CIHM 
Microfiche 
Series 
(IMonograplis) 


ICIMH 

Collection  de 
microfiches 
(monographles) 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


Technical  and  Bibliographic  Notes  /  Notes  techniques  et  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best  original 
copy  available  for  filming.  Features  of  this  copy  which 
may  be  bibliographically  unique,  which  may  alter  any  of 
the  images  in  the  reproduction,  or  which  may 
significantly  change  the  usual  method  of  filming  are 
checked  below. 


0 
D 
0 


n 


D 


D 


Coloured  covers  / 
Couverture  de  couleur 

Covers  damaged  / 
Couverture  endommag^ 

Covers  restored  and/or  laminated  / 
Couverture  restaur^  et/ou  pellicuide 


Cover  title  missing  /  Le  titre  de  couverture  manque 
I   Coloured  maps  /  Cartes  gdographiques  en  couleur 

□   Coloured  ink  (i.e.  other  than  blue  or  black)  / 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

□   Coloured  plates  and/or  illustrations  / 
Planches  et/ou  illustrations  en  couleur 

□   Bound  with  other  material  / 
Reli6  avec  d'autres  documents 

Only  edition  available  / 
Seule  Edition  disponible 

Tight  binding  may  cause  shadows  or  distortion  along 
interior  margin  /  La  reliure  serr^  peut  causer  de 
I'ombre  ou  de  la  distorsion  le  long  de  la  marge 
int^rieure. 

Blank  leaves  added  during  restorations  may  appear 
within  the  text.  Whenever  possible,  these  have  been 
omitted  from  filming  /  II  se  peut  que  certaines  pages 
blanches  ajout^es  lors  d'une  restauration 
apparaissent  dans  le  texte,  mais,  lorsque  cela  6tait 
possible,  ces  pages  n'ont  pas  6\6  film^s. 

Additional  comments  / 
Commentaires  suppl^mentaires: 


L'Institut  a  microfilm^  le  meilteur  exemplaire  qu'il  lui  a 
6t6  possible  de  se  procurer.  Les  details  de  cet  exenrv 
plaire  qui  sont  peut-dtre  uniques  du  point  de  vue  bibli- 
ographique,  qui  peuvent  modifier  une  image  reproduite, 
ou  qui  peuvent  exiger  une  modifnation  dans  la  m^tho- 
de  normale  de  filmage  sont  indiqute  ci-dessous. 

I      I  Coloured  pages  /  Pages  de  couleur 

I I   Pages  damaged  /  Pages  endommagtes 


D 


Pages  restored  and/or  laminated  / 
Pages  restaurtes  et/ou  pellicul^s 


Q  Pages  discoloured,  stained  or  foxed  / 
Pages  dteolortes,  tachetdes  ou  piqudes 

I      I   Pages  detached  /  Pages  d^tach^s 

[/]   Showthrough/ Transparence 

0  Quality  of  print  varies  / 
Quality  indgale  de  I'impression 


D 
D 


n 


Includes  supplementary  material  / 
Comprend  du  materiel  suppl^mentaire 

Pages  wholly  or  partially  obscured  by  errata  slips, 
tissues,  etc.,  have  been  refilmed  to  ensure  the  best 
possible  image  /  Les  pages  totalement  ou 
partiellement  obscurcies  par  un  feuillet  d'errata,  une 
pelure,  etc.,  ont  6\§  film^es  ^  nouveau  de  fa^on  d 
obtenir  la  meilleure  image  possible. 

Opposing  pages  with  varying  colouration  or 
discolourations  are  filmed  twice  to  ensure  the  best 
possible  image  /  Les  pages  s'opposant  ayant  des 
colorations  variables  ou  des  decolorations  sont 
filmtes  deux  fois  afin  d'obtenir  la  meilleure  image 
possible. 


This  itnn  !•  filmed  at  th*  raductlon  ratio  chaekad  balow  / 

Ce  document  est  film*  au  taux  da  rMuction  IndlquA  ei^lataoua. 

lOx                            14x                           18x 

22x 

26x 

30x 

V 

12x 


Itx 


20x 


24x 


28x 


32x 


Th«  copy  filmad  h«r«  has  bswi  raproducad  thantis 
to  tha  ganaroaicy  of: 

National  Library  of  Canada 


L'aaampiaira  filmt  fut  raproduit  grAa  i  la 
ginAroaiti  da:  > 

i 

Bibliothaqaa  nationala  du ^Canada 


Tha  imai  «  appaaring  haca  ara  tha  baat  quality 
posaibia  conaidaring  tha  condition  and  lagibility 
of  tha  ariginal  copy  and  in  liaaping  with  tha 
filming  aontraat  spacif ieations. 


Original  copia*  in  printad  papar  covars  ara  fllmad 
baginning  with  tha  front  covar  and  anding  on 
tha  last  paga  with  a  printad  or  illustratad  impraa- 
sion.  or  tha  back  covar  whan  appropriata.  All 
othar  original  copias  ara  filmad  baginning  on  tha 
first  paga  with  a  printad  or  illustratad  lmpras« 
sion.  and  anding  on  tha  last  paga  with  a  printad 
or  illuatratad  imprsssion. 


Tha  laat  racordad  frama  on  ssch  microficha 
shall  contain  tha  symbol  — ^  (moaning  "CON- 
TINUED"), or  tha  symbol  V  Imsaning  "END"). 
whiehavar  applias. 

Maps,  platas.  charts,  ate.  may  ba  filmad  at 
diffarant  raduction  ratios.  Thosa  too  larga  to  ba 
antiraly  includod  in  ona  axposuro  ara  filmad 
baginning  in  tha  uppar  laft  hand  cornar.  laft  to 
right  and  top  to  bottom,  as  many  framas  as 
raquirad.  Tha  following  diagrams  illustrata  tha 
mathod: 


Las  imagas  suivantas  ont  iti  raproduitas  avac  la 
plus  grand  sain,  compta  tanu  da  la  condition  at 
da  la  nanat*  da  Taxamplaira  film*,  at  an 
confermM  avac  las  conditions  du  contrat  da 
fUmaga. 

Laa  aaamplairas  originaux  dont  la  couvarturs  an 
papiar  ast  Imprimaa  sont  filmSs  1%  commandant 
par  la  pramiar  plat  at  an  tarminant  soit  par  la 
darnlAra  paga  qui  comporta  una  amprainta 
d'imprassion  ou  d'illustration.  soit  par  la  sacond 
plat,  salon  lo  eas.  Taus  laa  autras  axamplairas 
originaux  sont  filmis  an  commandant  par  la 
pramiara  paga  qui  comporta  una  amprainta 
d'impraasion  ou  d'illustration  at  an  tarminant  par 
la  damiira  paga  qui  comporta  una  taila 
amprainta. 

Un  daa  symbolaa  suivants  apparaitra  sur  la 
darniira  imaga  da  chaqua  microficha.  sslon  is 
cas:  la  symbols  -*>  signifia  "A  SUIVRE".  la 
symbols  ▼  signifia  "FIN". 

Laa  cartaa.  planchas.  tablaaux.  ate.  pauvant  atra 
filmas  A  daa  Uux  da  raduction  diffarants. 
Lorsqua  la  documant  ast  trap  grand  pour  *trs 
raproduit  an  un  saul  clicha.  il  ast  filma  *  partir 
da  I'angla  sup^riaur  gaucha.  da  gaucha  k  droita. 
at  da  haut  an  baa.  an  pranant  la  nombra 
d'imagaa  n*cassaira.  Laa  diagrammas  suivants 
illustrant  la  mathoda. 


1 

2 

3 

4 

5 

6 

Mioocorr  rbouition  tbt  chart 

(ANSI  and  ISO  TEST  CHART  No.  2) 


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tim 

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12.2 

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Hi 
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/APPLIED  \M/V3E 


1653  Eajt  Moln  Slrret 

RochMler,   Ne.   rorl        14609       USA 

(716)   482  -  0300  -  Phon. 

(716)  288-5989  -  Fo. 


Carnegie  Endowment  for  International  Peace 

DIVISION  OF  ECONOMia  AND  4IIST0RY 

lOHN  BKTfS  tlXni,  OOIEC 


RELIMINARY 


Vffiii 'SXi.'r.  r 


■'m 


Carnegie  Endowment  for  International  Peace 

DIVISION  OF  ECONOMICS  AND  HISTORV 

lOHN  BATES  CURK,  DIRECTOR 


PRELIMINARY  ECONOMIC  STUDIES  OF  THE  WAR 

EDITED  BY 

DAVID  KINLEY 
Profeuor  of  Politic*]  Economy.  Uoiveriity  of  Illinois 
Member  of  Committee  of  Reieirch  of  the  Endowment 


THE  EARLY  EFFECTS  OF  THE  EUROPEAN 

WAR  UPON  THE  FINANCE.  COMMERCE. 

AND  INDUSTRY  OF  CHILE 

BY 

L.  S.  ROWE 


ProfesMr  of  Political  Science.  Univeraity  of 
Peaniylvania 


NEW  YORK 

OXFORD  UNIVERSITY  PRESS 

AMERICAN  BRANCH :  js  Wist  jmd  Stimt 
LONDON.  TORONTO.  MELBOURNE.  AND  BOMBAY 
1918 


COPYRIGHT  1918 

■V  TBI 

CARNEGIE  ENDOWMENT  FOR  INTERNATIONAL  PEACE 
3  Jackson  Placi.  Wasbington.  D.  C. 


0  922043 


• 


INTRODUCTORY  NOTE  BY  THE  DIRECTOR 

The  Division  of  Economics  and  liistory  of  the  Car- 
negie Endowment  for  International  Peace  is  organized 
to  "promote  a  thorough  and  scientific  investigation  of 
the  causes  and  results  of  war."  In  accordance  with  this 
purpose  a  conference  of  eminent  statesmen,  publicists, 
and  economists  was  held  in  Berne,  Switzerland,  in 
August,  1911,  at  which  a  plan  of  investigation  was 
formed  and  an  exlensive  list  of  topics  was  prepared. 
An  elaborate  series  of  investigations  was  undertaken, 
and,  if  the  war  had  not  intervened,  the  resulting  reports 
might  have  been  expected,  before  the  present  date,  in 
printed  form. 

Of  works  so  undertaken  some  aim  to  reveal  direct 
and  indirect  consequences  of  warfare,  and  thus  to  fur- 
nish a  basis  for  a  judgment  as  to  the  reasonableness  of 
the  resort  to  it.  If  the  ev'ls  are  in  reality  larger  and 
the  benefits  smaller  than  in  the  common  view  they  ap- 
pear to  be,  such  studies  should  furnish  convincing  evi- 
dence of  this  fact  and  aW'^d  a  basis  for  an  enlightened 
^jolicy  whenever  there  is        ger  of  international  conflicts. 

Studies  of  the  causes  oi  warfare  reveal,  in  particular, 
those  economic  influences  which  in  time  of  peace  bring 
about  clashing  interests  and  mutual  suspicion  and  hos- 
tility. They  show  what  policies,  as  adopted  by  different 
nations,  reduce  the  conflicts  of  interest,  inure  to  the 
common  benefit,  and  afford  a  basis  for  international  con- 
fidence and  good  will.  They  tend,  further,  to  reveal 
the  natural  economic  influences  which  of  themselves  bring 
about  more  and  more  harmoni  us  relations  and  tend  to 
substitute  general  benefits  for  che  mutual  injuries  that 
follow  unintelligent  self-seeking.  Tcononic  interna- 
tionalism needs  to  be  fortified  by  the  mutual  trust  that 
just  deahng  creates;  but  just  conduct  itself  may  be 

iii 


iv       INTRODUCTORY  NOTE  BY  THE  DIRECTOR 

favored  by  economic  conditions.  These,  in  turn,  may  be 
created  partly  by  a  natural  evolution  and  partly  by  the 
conscious  action  of  governments;  and  both  evolution  and 
public  action  are  among  the  important  subjects  of  inves- 
tigation. 

An  appeal  to  reason  is  m  order  when  excited  feelings 
render  armed  conflicts  imminent;  but  it  is  quite  as  surely 
called  for  when  no  excitement  exists  and  when  it  may 
be  foreitalled  and  prevented  from  developing  by  sound 
national  policies.  To  furnish  a  scientific  basis  for  rea- 
sonable international  policies  is  the  purpose  of  some  of 
the  studies  already  in  progress  and  of  more  that  will 
hereafter  be  imdertaken. 

The  war  has  interrupted  work  on  rather  more  than 
a  half  of  the  studies  that  were  in  progress  when  it  be- 
gan, but  it  has  itself  furnished  topics  of  immediate  and 
transcendent  importance.  The  costs,  direct  and  indirect, 
of  the  conflict,  the  commercial  policies  induced  by  it  and, 
especially,  the  direct  control  which,  because  of  it,  govern- 
ments are  now  exercising  in  many  spheres  of  economic 
activity  where  formerly  competition  and  individual  free- 
dom held  sway,  are  phenomena  that  call,  before  almost 
all  others,  for  scientific  study.  It  is  expected  that  most 
of  the  interrupted  work  will  ultimately  be  resumed  and 
that,  in  the  interim  before  this  occurs,  studies  of  even 
greater  importance  will  be  undertaken  and  will  be  pushed 
rapidly  toward  completion. 

The  publications  of  the  Division  of  Economics  and 
History  are  under  the  direction  of  a  Committee  of  Re- 
search, the  membership  of  which  includes  the  statesmen, 
publicists,  and  economists  who  participated  in  the  Con- 
ference at  Berne  in  1911,  and  two  who  have  since  been 
added.    The  list  of  members  at  present  is  as  follows: 

Eugene  Borel,  Professor  of  Public  and  Inters  •  :onal 
Law  in  the  University  of  Geneva. 

Lujo  Brextano,'  Professor  of  Economics  in  the  Uni- 
versity of  Munich;  Member  of  the  Royal  Bavarian 
Academy  of  Sciences. 

'  Membership  ceased  April  fl.  1917,  by  reason  of  the  declaration  of  a  state 
of  war  between  the  United  States  and  the  Imperial  Uerman  tiovernment. 


INTRODUCTORY  NOTE  BY  THE  DIRECTOR         v 

Chables  GroE,  Professor  of  Comparative  Social  Eco- 
nomics in  the  University  of  Paris. 

H.  B.  Gkevex,  Professor  of  Political  Economy  and 
Statistics  in  the  University  of  Leiden. 

Francis  W.  Hirst,  London. 

Davto  Kinley,  Professor  of  Political  Economy  in  the 
University  of  Illinois. 

Henri  La  Fontaine,  Senator  of  Belgium. 

His  Excellency  Luigi  Luzzatti,  Professor  of  Con- 
stitutional Law  in  the  University  of  Rome;  Secretary 
of  the  Treasury,  1891-08;  Prime  Minister  of  Italy, 
1908-11.  ' 

GoTARO  OoAWA,  Professor  of  Finance  at  the  Uni- 
versity of  Kioto,  Japan. 

Sir  George  Paish,  London. 

Maffeo  Pantaleoni,  Professor  of  Political  Economy 
in  the  University  of  Rome. 

EuGEN  Philippctich  von  Philippsbero,'  Professor 
of  Political  Economy  in  the  University  of  Vienna; 
Member  of  the  Austrian  Herrenhaus,  Hofrat. 

Paul  S.  Reinsch,  United  States  Minister  to  China. 

His  Excellency  Baron  Y.  Sakatani,  formerly  Min- 
ister of  Finance. 

Theodor  Schiemann,*  Professor  of  the  History  of 
Eastern  Europe  in  the  University  of  Berlin. 

Habald  Westergaard,  Professor  of  Political 
Science  and  Statistics  in  the  University  of  Copen- 
hagen. 

Friedrich  Freiherr  von  Wiesep,*  Professor  of  Po- 
litical Economy  in  the  University  of  Vienna. 

The  function  of  members  of  this  Commia>c  is  to  select 
collaborators  competent  to  conduct  investigations  and 
present  reports  in  the  form  of  books  or  monographs; 
to  consult  with  these  writers  as  to  plans  of  study;  to 
read  the  completed  manuscripts,  and  to  inform  the 
officers  of  the  Endowment  whether  they  merit  publica- 

•  Died,  June,  1917. 

•  Membership  ceased  April  6,  1917,  by  reason  of  the  declaration  of  a  state 
of  war  between  the  United  States  and  the  Imperial  German  Government 

Membership  ceased  December  7,  1917,  by  reason  of  the  declaratioa  of  a 
8Ute  of  war  between  the  United  States  and  Austria-Hungary 


vi       INTRODUCTORY  NOTE  BY  THE  DmECTOR 

tion  in  its  series.  This  editorial  function  does  not  com- 
mit the  members  of  the  Committee  to  any  opinions  ex- 
pressed by  the  writers.  Like  other  editors,  they  are 
asked  to  vouch  for  the  usefukiess  of  the  works,  their 
scientific  and  literary  merit,  and  the  advisability  of  issu- 
ing them.  In  like  manner  the  publication  of  the  mono- 
graphs does  not  commit  the  Endowment  as  a  oody  or 
any  of  its  officers  to  the  opinions  which  may  be  expressed 
in  them.  The  standing  and  attainments  of  the  writers 
selected  afford  a  guarantee  of  thoroughness  of  research 
and  accivacy  in  the  statement  of  facts,  and  the  character 
of  many  of  the  works  will  be  such  that  facts,  statistical, 
historical,  and  descriptive,  will  constitute  nearly  the 
whole  of  their  content.  In  so  far  as  the  opinions  of  the 
writers  are  revealed,  they  are  neither  approved  nor  con- 
demned by  the  fact  that  the  Endowment  causes  them 
to  be  published.  For  example,  the  publication  of  a 
work  describing  the  attitude  of  various  socialistic  bodies 
on  the  subject  of  peace  and  war  implies  nothing  as  to 
the  views  of  the  officers  of  the  Endowment  on  the  sub- 
ject of  socialism;  neither  will  the  issuing  of  a  work,  de- 
scribing the  attitude  of  business  classes  toward  peace 
and  war,  imply  any  agreement  or  disagreement  on  the 
part  of  the  officers  of  the  Endowment  with  the  views 
of  men  of  these  classes  as  to  a  protective  policy,  the 
control  of  monopoly,  or  the  regulation  of  banking  and 
currency.  It  is  necessary  to  know  how  such  men  gen- 
erally think  and  feel  on  the  great  issue  of  war,  and  it  is 
one  of  the  purposes  of  the  Endowment  to  promote  studies 
which  will  accurately  reveal  their  attitude.  Neither  it 
nor  its  Committee  of  Research  vouches  for  more  than 
that  the  works  issued  by  them  contain  such  facts;  that 
their  statements  concerning  them  may  generally  be 
trusted,  and  that  the  works  are,  in  a  scientific  way,  of 
a  quality  that  entitles  them  to  a  reading. 

John  Bates  Clask, 
Director. 


THE  EARLY  EFFECTS  OF  THE  EUROPEAN 

WAR  UPON  THE  FINANCE,  COMMERCE, 

AND  INDUSTRY  OF  CHILE 


EDITOR'S   PREFACE 


This  study  of  the  first  effects  of  the  European  War 
on  Chile  was  made  by  Dr.  L.  S.  Rowe,  of  the  University 
of  Pennsylvania,  who  spent  two  months  in  the  country 
for  the  purpose.  Dr.  Rowe  needs  no  introduction.  He 
is  well  known  in  both  North  and  South  America  and  has 
been  long  recognized  as  an  authority  on  Pan  American 
relations  and  policy.  His  knowledge  of  the  people  and 
the  language  of  Chile  makes  it  peculiarly  fitting  for  him 
to  prepare  such  a  report. 

Dr.  Rowe's  study  shows  that  trade,  transportation, 
labor  conditions,  and  finance  in  Chile  all  suffered.  As 
Dr.  Rowe  remarks,  "  The  widespread  sufiFering  caused 
throughout  Chile  by  reason  of  the  European  conflict  is 
but  another  indication  of  how  deeply  the  vital  interests 
of  the  republics  of  America  have  been  affected.  Not 
only  were  government  finances  seriously  impaired  but 
almost  every  branch  of  industrial  life  suffered  a  severe 
shock." 

WTiile  it  is  true  that  the  European  War  r,t  its  out- 
break produced  serious  effects  on  the  economic  life  of 
Chile,  as,  indeed,  of  other  South  American  countries, 
some  of  the  evil  results  were  soon  overcome.  Moreover, 
some  of  the  immediate  effects  of  the  war  were  good 
rather  than  bad.  In  r  11  cases  we  find  reported,  at  first, 
stoppage  of  industry,  trade  and  commerce,  and  dis- 
organization of  finance  and  labor.  But  readjustment 
soon  took  place,  in  some  cases  on  a  healthier  basis.  Bad 
credit  practices  have  been  destroyed;  desirable  retrench- 
ment in  public  expenditures  has  been  in  some  cases 
enforced.  Trade  losses  in  one  direction  have  been  made 
up  in  many  instances  by  gains  in  other  directions;  and, 

▼u 


VUl 


EDITOR'S  PREFACE 


in  some  cases  perhaps,  more  natural  routes  and  relations 
have  been  estabhshed.  Some  of  these  advantages  will 
undoubtedly  be  lasting. 

Very  likely  some  of  the  main  currents  of  trade  will 
be  permanently  altered  and  domestic  industry  will  un- 
doubtedly be  stimulated.  In  so  far  as  this  stimulation 
leads  to  greater  use  at  home  of  the  immense  natural 
resources  of  South  American  coimtries  it  will  be  a  benefit 
to  their  people  as  well  as  to  the  rest  of  the  world. 

It  is  believed  that  this  study,  in  spite  of  the  fact  that 
it  was  written  two  and  one-half  years  ago,  will  be  of 
interest  in  connection  with  that  by  Seflor  Vildesola  on 
Chile  and  the  European  War,  published  by  the  Endow- 
ment in  its  Division  of  Intercourse  and  Education.  The 
reader  must  remember  that  it  was  written  soon  after  the 
outbreak  of  the  European  War  and  that  the  figures  are 
those  of  that  period.  It  is  believed,  however,  that  the 
material  will  be  of  value  as  indicating  the  immediate 
effect  at  the  outbreak  of  the  war  on  the  commerce, 
finances,  and  industries  of  Chile. 

David  Kinley, 

Editor. 


FOREWORD 


The  material  contained  in  this  report  was  collated  dur- 
ing the  course  of  a  visit  to  Chile  in  the  summer  of  191i>. 
The  purpose  of  the  Carnegie  Endowment  was  to  secure  a 
series  of  studies  setting  forth  the  effect  of  the  European 
War  on  certain  of  the  countries  of  South  America.  It  is 
important  in  reading  this  report  to  bear  in  mind  that  its 
purpose  is  to  explain  the  immediate  effects  of  the  out- 
break of  the  European  War  on  the  finances,  commerce 
and  industry  of  Chile.  The  report  was  submitted  to  the 
Endowment  late  in  1915.  The  period  that  has  elapsed 
since  its  preparation  has  witnessed  marked  changes  in  the 
financial  and  industrial  situation  of  Chile.  The  rapid  rise 
in  the  price  of  nitrate  and  copper  has  brought  these  indus- 
tries to  the  highest  level  of  prosperity.  The  situation  in 
1918  is  in  marked  contrast  with  that  which  prevailed  im- 
mediately after  the  outbreak  of  the  war. 

L.  S.  RowE. 

University  of  Pennsylvania, 

February,  1918. 


CUAPRB 


I. 


II. 


III. 

IV. 
V. 


CONTENTS 

VAOB 

The  Economic  and  Physical  Backgbound      1 

A.  The  Nitbate  and  Mineral  Region 

OF  the  North 3 

B.  The  Agricultural  Centpal  District  5 

C.  The  Southern  District  ....  8 
The  Industrial,  Commercial,  and  Finan- 
cial Situation  Immediately  Preceding 
THE  War 9 

Effect  of  the  War  on  National  Finances    11 
Effect  of  the  War  on   Currency  and 

Banking 18 

Effect  of  the  War  on  Commerce  and  In- 
dustry   25 

The  Copper  Industry 28 

Agriculture 29 

Domestic  and  International  Trade   .     29 
Emergency  Measures  Adopted  to  En- 
able Merchants  to  Meet  Conditions 

CREi^TED  BY  THE  WaR 82 

Transportation  Facilities  ^s  Affected 

BY  THE  War S4 

Labor  Conditions  as  Affected  by  the 

War 87 

Conclusion 47 

Appendices 51 


THE  EARLY  EFFECTS  OF  THE  EUROPEAN 

WAR  UPON  THE  FINANCE,  COMMERCE, 

AND  INDUSTRY  OF  CHILE 


CHAPTER  I 

THE  ECONOMIC  AND  PHYSICAL 
BACKGROUND 


The  economic  and  iSnancial  condition  of  Chile  before 
and  after  the  outbreak  of  the  European  War  can  best 
be  understood  by  keeping  constantly  in  mind  the  peculiar 
conditions  of  physical  environment  which  have  given  to 
the  country  an  exceptional  position  amongst  the  South 
American  republics. 

In  physical  conformation,  Chile  is  a  long,  narrow 
country  stretching  from  latitude  17°  15'  south  to  55°  59' 
south,  a  distance  of  2,535  miles.  Compared  with  its 
enormous  coast  line,  the  country  is  exceedingly  narrow, 
ranging  from  a  width  of  102  miles  (latitude  31°  30)  to 
210  miles  (latitude  46°  30').  The  population  is  massed 
in  the  central  district,  the  far  southern  section  being 
practically  uninhabited  and  the  population  of  the  arid 
northern  district  being  limited  to  the  mining  population 
of  the  nitrate,  copper,  iron,  and  borax  fields.  Inasmuch 
as  there  is  little  immigration  into  Chile,  the  increase 
of  population  is  due  almost  entirely  to  the  excess  of 
births  over  deaths.  It  is  true  that  the  nitrate  fields 
of  the  North  attract  a  certain  number  of  Bolivian 
laborers,  but  their  number  remains  fairly  constant, 
diminishing  somewhat  in  periods  of  depression  and 
increasing  in  periods  of  prosperity. 


THE  EARLY  EFFECTS  OF 
The  growth  of  population  in  Chile  has  beenas  follows: 


1S5 1.010^3 

;*S i/»3^i 

}*** 1,43»,1*0 

J°*? 1,819,MS 

"" 2,075^71 


12?* 3.715.144 

J2?I V49^79 

"I? 3^1,703 

"'♦ 3.596,541 


The  distribution  of  popuktion  amons  the  twentv-fm.r 
ovmces  of  the  RenuhUn  ;,  oc  f^u'r        ^^enty-four 


provinces  of  the  Republic  is  as  foUows: 


u 

PravlacM  fl 

? 

T««^"«    • 23^  ^ii^ 

i^'P"*^*    M.957  110,036 

Antofagasta  ...120,718  113323 

i^*"*"?"*    79485  63,968 

Coquimbo    34,862  175,021 

Aconcagua    ....  14,310  128,486 

Valparafso   ....     5,059  281,385 

S?2iV"»?    14.672  516,870 

^H'M'ns   6,066  92,339 

Colchagua    ....     9,948  159,030 

S"'"'<^«*    7,714  107,095 

;?'<■»    9,948  131,957 

i;'""«*S 10,210  109363 

"■"'«'    MIO  110316 

J^"*"*  ••• 8,823  166,245 

ConcepcMn   ....     8,422  216,994 

^""•■o    8.366  61,538 

5T'° 13.587  97,968 

**"    /»    7,701  109,775 

f/  ,•*.'". 15.10J  139,553 

^■'**'^'»    21.637  118,277 

Llanquihue   ....  91,676  105,043 

S"'°t    ^-'^W  88,619 

Magallanes  ....171,438  17330 

757366     3,249,279 


!i 


23 

OS 

03 

5.0 
9.0 
55.6 
35.2 
15.2 
15.9 
13.8 
13.2 
10.7 
17.'' 

lo. 

253 

9.6 

7.2 
14.2 
9.2 

5.5 

1.1 
4.0 
0.1 


44,291 
119,714 
122354 

65,875 
181,242 
135,558 
311309 
566,787 

95324 
159,676 
108,791 
133,235 
113365 
119,107 
172,244 
230,442 
62,732 
102,170 
115,177 
166,895 
141,298 
II8373 
93,684 
24374 


s 


If 


&.0- 


13 
23 
1.0 
OS 
63 
93 
61.6 
38.6 
15.7 
16.0 
14.1 
13.4 
11.1 
183 
193 
27.4 
93 
73 
143 
11.0 
63 
13 
4.2 
0.1 


-1913 . 


15343 

9,678 
9,031 
1307 
6,221 
7,072 
30,434 
49317 
3,185 
646 
1,696 
1,278 
4,002 
8,791 
5399 
13,448 
1,194 
4,202 
5,402 
27342 
23,021 
13,930 
5.065 
7,044 


P 

H 


103 

163 

143 

53 

63 

10.4 

193 

173 

6.7 

03 

3.1 

13 

7.1 

143 

7.0 

11.7 
33 
83 
9.4 

323 

323 

23.4 

103 

573 


43     3305317  43      256,038        I43 

miltu'Jnf"?^  population  of  Chile  is,  in  the  main,  a 
mixture  of  Spanish  and  Indian  blood,  whereas  the  ruliig 
classes  are  white,  of  pure  Spanish  descent.  ^ 

For  purposes  of  study,  the  country  may  best  be  divided 
mto  three  zones: 


THE  EUROPEAN  WAR  UPON  CHILE  8 

(a)  The  nitrate  and  mineral  regior   of  the  North. 

(b)  The  agricultural  central  district,  which  also 
contains  important  mineral  deposits. 

(c)  The  vast  southern  region  stretching  southward 
from  the  IsUmd  of  Chilo6  to  the  MageUan  dis- 
trict which  is,  as  yet,  practically  iminhabited  and 
whose  resources  are  almost  untouched. 

A.    The  NrnuTE  and  Mikehal  Region  of  the  North 

The  salitre  of  Chile  or  Chilean  saltpeter  (chemically, 
sodium  nitrate  [Na  NO,])  is  found  in  the  district  from 
the  Camerones  River  in  the  North  to  Caldera  in  the 
South.*  The  nitrate  area  is,  roughly  speaking,  about 
450  miles  in  length,  in  an  arid  region.  The  deposits  are 
found  at  from  fourteen  to  twenty  miles  from  the  coast 
at  elevations  varyj-  g  from  2,200  to  7,50C  feet  abovt  sea- 
level.* 

The  importance  of  nitrate  as  a  national  product  is 
readily  seen  from  the  fact  that  it  represents  nearly  eighty 
per  cent  in  value  of  the  total  exports  of  Chile. 

The  growth  of  nitrate  production  has  been  as  follows: 

-.  Amount  in 

"•'■  Metric  Tons 

\^0 2,110^61 

\l\l 3.531,093 

\l\l 2,583340 

*'" 2,463356 

In  1913  the  nitrate  output  represented  about  eighty 
per  cent  of  the  total  mineral  product  of  the  country. 
Although  nitrate  is  by  far  the  most  important  product 
of  this   northern   district,   other  mineral   products   of 

Kor'eS  fn^d  Vm«ttVom"nrer?e??9;/"''''  "'^  °**"  '^"""'  ^^  «•  «"'""  »' 
San  S-nSrCal^mf*""  ''"™"  "^"'"y'  **^"8  ""^  Scientific  Press. 


4  THE  EARLY  EFFECTS  OF 

importance  are  found  in  the  same  region.  Of  these 
copper  ranks  first.  Iron  and  borax  are  found  also 
in  considerable  quantities.  It  is  to  be  noted,  how- 
ever, that  these  minerals  are  found  not  only  in  the 
northern  section  but  in  the  central  agricultural  districts 
as  well.  Inasmuch  as  the  most  important  nitrate  fields 
did  not  come  under  Chilean  jurisdiction  until  after  the 
Peruvian  War  of  1870,  as  a  result  of  the  annexation 
of  the  Peruvian  provinces  of  Tarapaca  and  Atacama  and 
of  the  Bolivian  province  of  Antofagasta,  the  preponder- 
ant position  of  nitrate  is  a  ir  *tter  of  the  last  thirty 
years. 

The  most  accurate  estimate*  indicates  that  during  the 
century  1810-1910  the  total  production  of  minerals  in 
Chile  w^s  $2,463,500,00C.  This  total  was  made  up  as 
follows  i 


Nitrate    $1,935,300,000 

Copper    68432,000 

Silver    298,695,000 

Coal   lUMifiOO 

Gold  68,084,000 

Other  Minerals   83,613,000 

The    latest    available    official    statistics    indicate    the 

mineral  production  in  1913  and  1914  as  follows: 

Product                                               1913  1914 

Nitrate  of  soda 9119,554,485  $106,333,337 

Copper    11,389315  11,790,523 

Coal     9,144,580  8,152,095 

Borax    3,636,835  1,675,117 

Iodine  1,935,400  3,154,444 

Silver    523,875  448,757 

Chalk    313,710  

Sulphur    399,115  450360 

Gold    286,680  208320 

Salt   i   j,695  335,562 

Iron  Ore   lof  "50  476,393 

Lime      69,040  » 304,137 

Lead    3370  3,063 

Zinc  405  65 

Total    $146,508,355  $133,219,931 

'  See  Wilson,  op.  cit.,  p.  110. 
'  Including  figures  for  chalk. 


THE  EUROPEAN  WAR  UPON  CHILE 


B.    The  Agiicultubal  Central  Distsict 

While  the  peculiar  physical  conformation  of  Chile 
means  a  relatively  restricted  arable  area,  the  importance 
of  the  agricultural  interests  is  such  as  to  give  to  Chile 
the  character  of  an  agricultival  country.  In  fact,  prior 
to  the  annexation  of  tiie  northern  provinces  in  1888,  this 
was  practically  the  exclusive  interest  of  the  country. 
In  spite  of  this  fact,  but  1.6  per  cent  of  the  total  area 
of  the  country  is  under  cultivation,  8,047,000  acres  out 
of  a  total  of  187,148,000.'  It  is  true  that  this  area  can 
be  greatly  extended,  but  in  the  north  central  section  such 
extension  involves  the  construction  of  extensive  irrigation 
works.  At  present  about  2,470,000  acres  are  under 
irrigation,  but  it  is  estimated  that  the  irrigation  system 
can  readily  be  extended  to  nearly  five  million  additional 
acres.  A  le\.  passed  December  9,  1914,  authorizes  the 
execu.  on  of  four  plans  known  as  the  Aconcagua,  Maule, 
Melado,  and  Laja  projects.  The  assent  of  the  property 
owners  atfected  has  been  received,  but  the  financial  crisis 
precipitated  by  the  European  War  has  temporarily  post- 
poned the  execution  of  the  plan.  In  the  south  central 
district,  where  the  rainfall  is  adequate  at  all  seasons,  the 
greatest  obstacle  to  more  extended  cultivation  has  been 
the  absence  of  immigration.  The  Chilean  agricultural 
laborer  has,  for  generations,  been  kept  in  a  condition  of 
economic  dependence.  In  addition  to  housing  and  a 
small  ration  of  from  one  to  two  and  one-fifth  pounds 
of  beans  per  day,  his  money  wage  ranges  from  twenty 
to  forty  cents  per  day.  The  depreciating  paper  cur- 
rency of  the  country  has  served  to  make  his  lot  more 
and  more  difScult.  With  a  relatively  low  wage  scale,  the 
agricultural  laborer  is  not  in  a  position  to  become  a 
small  farmer.  In  fact,  with  the  exception  of  relatively 
restricted  sections  in  the  provinces  of  Valdivia  and  Con- 

*  Wilson,  op.  cit.,  p,  114. 


ti  THE  EARLY  EFFECTS  OF 

cepcion,  the   system   of   large   landed  estates   prevails. 
These  conditions  have  discouruged  immigration. 

In  this  section  all  the  cereals  and  fruits  of  the  temperate 
zone  are  cultivated,  as  well  as  some  of  the  sub-tropical 
fruits,  such  as  the  orange  and  the  lemon.  Cattle  raising 
is  also  an  important  factor  in  the  wealth  of  the  region. 
The  growing  of  grapes  for  the  making  of  wine  has  been 
for  many  years  one  of  the  leading  industries  of  the 
central  district.  A  little  over  140,000  acres  are  now  in 
vineyards.    In  1912  the  leading  crops  were  as  follows: 

Metric  Tons 
Cereals  and  Vegetables  WW 

Wheat    615.023 

Barley   70.786 

Oats   i9,0fl5 

Corn     38."4 

Potatoes   -'62.T95 

Beans    *^fi^ 

Carrots    1^.700 

Alfalfa  hay    262,795 

Clover  hay  ^.0*2 

Tobacco    2.30S 

Clover  seed   ^*0 

Hemp  fibre   272 

In  addition  to  the  above  products,  it  is  essential 
to  mention  the  lumber  industry,  which  is  yet  in  its 
infancy  in  Chile  but  which  promises  to  assume  great 
importance  owing  to  the  large  quantities  of  excellent 
timber  to  be  fouud  in  the  provinces  of  Valdivia,  Llan- 
quihue,  and  on  the  Island  of  Chiloe.  Furthermore, 
during  the  last  twenty-five  years  apiculture  has  assumed 
large  proportions.  In  1912  there  were  86,000  beehives 
in  Chile,  with  a  total  production  of  731  tons  of  honey 
and  157  tons  of  wax.'  Dairy  products  are  also  a 
significant  factor.  In  1912  there  were  195,167  milch 
cows  in  Chile,  with  a  total  production  of  33,300,000 
gallons  of  milk,  1,336  metric  tons  of  butter,  and  3,493 
metric  tons  of  cheese. 

It  is  also  in  this  central  district  that  manufacturing 
has  assumed  considerable  importance.     In  fact,  ahnost 

« See  Wilson,  op.  cit.,  p.  117. 


THE  EUROPEAN  WAR  UPON  CHILE  7 

every  foreign  visitor  expresses  surprise  that  the  indus- 
tries of  the  country  have  not  been  developed  on  a  far 
larger  scale.  With  ample  water  power,  and  no  lack 
of  coal,  iron,  and  lumber,  one  would  expect  Chile 
to  be  the  leading  manufacturing  country  of  South 
America.  Although  there  has  been  considerable  de- 
velopment of  national  industries  the  great  obstacles 
have  been  the  lack  of  capital  and  the  absence  of 
an  adequate  supply  of  skilled  labor.  With  practically 
no  immigration  from  Europe,  little  attempt  has  been 
made  to  develop  the  industrial  capacity  of  the  native 
laborer. 

In  spite  of  these  difficulties  the  industrial  development 
of  the  country  has  proceeded  without  interruption  during 
the  last  twenty-five  years.  In  1912  the  number  of  manu- 
facturing establishments,  together  with  capital  and  out- 
put, was  as  follows:' 

Number  of 

Establish-  Value  of 

Industry  ments  Capital  Output 

Flour  mills    179  $U,193,434  $14,530V219 

Breweries    63  5,334,031  3,249,4^3 

Tanneries     129  5,116,415  4,936,:J0O 

Establishments  for  the  elaboration   of 

wood  products  other  than  sawmills..  134  4,827,576  5,044,088 

SawmiUs    296  2,931,287  1,701,626 

hugar   refineries    g  4,327,917  4,933.736 

Printing  and  binding  establishments .. .  302  4,369,780  6,025,810 

Shoe  factories   45  3,498,020  4,394,493 

Olass  factories  3  583,176  457,995 

Spaghetti  factories  40  892,497  783,176 

Craclter  factories   12  379,145  645,057 

Fruit  and  vegetable  canneries 23  1,495,839  603,975 

Meat  and  sea  food   paclcing  establish- 
ment*      6  158,000  175,090 

Shipbuilding  and  repair 32  929,257  556,518 

Hat  factories   11  1,090,942  829,132 

Corset  factories  5  273,906  364,210 

Cement  factories  3  726;j.33  450,500 

Textile  factories    18  2,409,427  2,097,426 

Agricultural    and    industrial    machine 

shops     2  763,333  633,333 

Bed  and  cot  factories 4  192,652  607,574 

Powder  factories  9  191,072  138,447 

Soap  and  candle   factories 66  1.738,732  2,047,497 

Total   1390  $54,422,771  a55,311,;;5 

'  See  Sinop»i»  E$tadittica  de  la  Republica  de  Chile.  Oflcina  Central  de 
Estadfstica,  1914. 


8 


EFFECTS  OF  WAR  UPON  CHILE 


While  some  manufacturing  is  carried  on  in  all  parts 
of  the  country  the  great  centers  of  industrial  activity  are 
the  provinces  of  Santiago,  Valparaiso,  and  Valdivia. 
The  labor  supply  is  almost  exclusively  native.  The  rate 
of  wages  is  exceedingly  k  and  the  position  of  the  labor 
classes  has  been  imfavorao^y  affected  by  the  depreciating 
paper  currency.  For  instance,  in  the  textile  industry 
the  average  wage  of  the  2,766  operatives  is  fifty-five 
cents  per  day.*  The  government  has  made  every  effort 
to  encourage  national  industries,  extending  protective 
tariffs  and,  in  some  cases,  offering  further  special  finan- 
cial inducements. 

The  central  district,  now  under  consideration,  in 
addition  to  its  agricultiural  and  industrial  position, 
also  possesses  important  mineral  deposits.  One  of  the 
greatest  copper  mines  of  Chile  is  situated  in  the  heart 
of  this  region. 


C.    The  Southern  Distbict 

With  the  exception  of  the  agricultural  and  lumber 
interests  on  the  Island  of  Chiloe  and  the  great  sheep 
ranges  of  the  MageUan  territory  the  resources  of  the 
far  southern  district  may  be  said  to  be  imtouched.  At 
present  the  population  of  the  Island  of  Ch'loe  is  94,714 
and  of  the  entire  Magellan  territory  22,744.  Although 
this  district  is  acquiring  increasing  importance,  it  repre- 
sents at  the  present  time  but  a  small  part  of  the  total 
production  of  the  country.  To  develop  its  resources 
large  investments  of  capital  will  be  necessary. 

'Wilson,  op.  cii.,  p.  119.  This  was  true  in  1915,  Since  then  the  wages 
of  industrial  laborers  have  increased  considerably. 


CHAPTER  II 

THE  INDUSTRIAL,  COMMERCIAL,  AND  FI- 
NANCIAL SITUATION  IMMEDIATELY 
PRECEDING  THE  WAR 


Although  Chile,  like  all  the  countries  of  South 
America,  felt  the  effects  of  the  industrial  and  financial 
depression  which  hung  over  Europe  during  the  year 
1913,  they  were  Lss  noticeable  than  in  the  Argentine 
and  in  Brazil.  This  was  due,  in  large  measure,  .o 
the  fact  that  the  spu-it  of  speculation  which  led  to 
inflated  values  in  both  of  those  countries  during  the 
period  of  1910  to  1913  did  not  extend  to  Chile.  There 
the  leading  influence  during  the  period  immediately 
preceding  the  war  was  the  declining  price  of  nitrate — 
at  once  the  most  important  article  of  export  (eighty  per 
cent  of  the  total  exports)  and  the  most  important  source 
of  national  revenue.^ 

Although  the  production  of  nitrate  had  not  been 
curtailed,  profits  were  rapidly  declining  and  plans  were 
formulated  to  reorganize,  imder  government  auspices, 
the  combination  of  nitrate  producers  which  had  been 
operated  successfully  for  a  number  of  years  but  which 
was  finally  dissolved  because  of  lack  of  cooperation. 

The  condition  of  the  nitrate  industry  reacted  unfav- 
orably on  the  general  economic  and  financial  condition 
of  the  country.  The  year  1913  was  marked  by  a 
restriction  of  bank  credits  which  accentuated  the  business 
depression.  Between  June  30,  1913,  and  June  30,  1914, 
bank  loans  declined  from  $115,085,956  to  $111,967,636 

'  The  nitrate  export  tax  yields  thirty-five  per  cent  of  total  national  revenues. 

9 


10 


EFFECTS  OF  WAR  UPON  CHILE 


(American  gold).  During  this  same  period  bank  de- 
posits declined  from  $91,240,000  to  $87,800,000. 

In  spite  of  these  unfavorable  conditions  the  country 
cannot  be  said  to  have  been  in  a  period  of  pronounced 
depression  as  was  the  case  in  Argentine  and  in  Brazil 
in  1912  and  1918.  It  is  true  that  but  few  new  enter- 
prises were  being  floated,  banks  were  exercising  greater 
care  in  extending  credits,  and  merchants  were  showing 
greater  caution  and  conservatism  in  their  purchases. 
Everybody  was  awaiting  an  improvement  in  nitrate 
prices,  which  alone  would  have  been  sufficient  to  place 
the  country  on  the  high  road  to  prosperity.  Further- 
more, there  were  indications  of  an  improvement  in  the 
price  of  copper,  the  low  price  of  which  had  been  for  a 
long  time  an  unfavorable  factor  in  the  Chilean  industrial 
situation. 

At  this  moment  of  expectancy,  the  European  War 
came  as  a  crushing  blow,  bringing  with  it  a  series  of 
consequences  which  seriously  embarrassed  the  national 
treasury  and  threatened  ruin  and  disaster  to  Jie  indus- 
tries of  the  country. 


CHAPTER  III 

EFFECT  OF  THE  WAR  ON  NATIONAL 
FIKANCES 


In  order  to  understand  the  unfortunate  effects  of  the 
war  on  Chilean  finances,  it  is  important  to  bear  in  mind 
the  extraordinary  and  exceptional  fiscal  system  of  the 
country.  Prior  to  the  war  of  1879  with  Peru  and 
i  olivia,  the  Chilean  fiscal  system  was  similar  in  most 
respects  to  those  of  the  other  South  American  countries. 
In  addition  to  the  customs  revenues,  the  main  sources  of 
income  to  the  national  treasury  were  a.  general  property 
tax  and  certain  internal  revenue  taxes.  As  a  result  of 
this  war,  Chile  took  from  Bolivia  the  province  of  Anto- 
fagasta  and  from  Peru  the  provinces  of  Atacama  and 
Tarapaca,  leaving  pending  for  subsequent  determination 
the  status  of  Tacna-Arica. 

The  annexation  of  these  great  nitrate  provinces  com- 
pletely changed  the  fiscal  system  of  the  country.  Pos- 
sessing a  practical  monopoly  of  the  nitrate  deposits  of 
the  world,  the  government  was  able  to  impose  a  high 
export  tax  without  danger  of  hampering  the  development 
of  the  industry.  This  tax  proved  so  productive  that  it 
was  possible  either  to  dispense  with  other  forms  of 
taxation  or  reduce  the  rates  to  so  low  point  as  to 
relieve  the  property  owners  of  the  greater  part  of  their 
burden.  From  a  country  with  a  normal  fiscal  system, 
Chile  was  soon  transformed  into  a  country  occupying 
the  exceptional  position  of  granting  to  its  inhabitants 

u 


12 


THE  EARLY  EFFECTS  OF 


practiciil  immunity  from  general  taxes  on  real  and  per- 
sonal property. 

While  at  first  glance  this  may  seem  an  advantage,  it 
involved  some  serious  dangers,  the  effects  of  which  soon 
became  apparent.  The  enormous  and  constantly  in- 
creasing returns  from  the  nitrate  export  tax  and  the 
consequent  diminution  of  all  direct  taxes,  relieved  the 
government  of  that  control  by  public  opinion  which  is 
the  immediate  and  direct  result  of  the  taxpayers'  vigi- 
lance. The  annual  budget  increased  rapidly,  due  to  a 
wide  extension  of  government  activities.  The  govern- 
ment embarked  upon  an  elaborate  system  of  state  rail- 
roads, which,  whatever  their  immediate  strategic  value  or 
ultimate  commercial  importance,  involved  the  necessity 
of  meeting  a  large  annual  deficit. 

This  situation,  while  profundly  affecting  the  or- 
ganization of  the  Chilean  administrative  system,  did 
not  involve  any  financial  difiiculties  so  long  as  the 
growing  nitrate  industry  assured  a  constantly  increasing 
national  revenue.  With  no  elastic  internal  revenue 
system  to  fall  back  upon,  it  was  evident  to  the  lead- 
ing financiers  of  the  country  that  any  serious  dechne 
in  the  returns  from  the  nitrate  tax  would  mean  disaster 
to  the  national  treasury.  The  years  1911,  1912,  and 
1913  brought  a  foretaste  of  what  was  impending.  The 
heavy  drain  on  the  financial  resources  of  the  country, 
due  to  the  unusually  large  deficits  in  the  state  railway 
budget,  resulted  in  deficits  which  in  1912  amounted  to 
$4,700,000  American  gold  and  in  1913  to  $2,000,000. 
It  was  claimed,  however,  that  this  deficit  was  temporary; 
the  state  railway  administration  holding  out  the  constant 
hope  that  the  new  lines  soon  would  be  put  on  a  paying 
basis. 

With  the  outbreak  of  the  war  the  most  important 
source  of  national  revenue  practically  disappeared.  The 
average  monthly  production  from  January  1  to  August 
1,  1914,  was  5,404,729  quintals  of  101.4  pounds.     The 


THE  EUROPEAN  WAR  UPON  CHILE  18 

rapid  decline  in  production  is  seen  from  the  following 
table:' 

Production 
Month  (in  quintals  of  101.4  Us.) 

August,  1914   4,830,333 

September,  1914   3,856,600 

October,  1914  3,865,494 

November,  1914  3,659,875 

December,  1914  3,438,759 

January,  1915    3,083,549 

The  price  of  nitrate  dropped  from  eight  shillings  per 
quintal  in  July,  914,  to  six  shillings  four  pence  in 
September,  and  soon  thereafter  to  five  shillings  eight 
pence.  Although  these  prices  were  quoted,  there  was 
practically  no  market.  Contemporaneous  with  the  rapid 
decline  in  price  and  adding  still  further  to  the  difficulties 
of  the  situation  came  an  extraordinary  rise  in  freight 
rates  which  made  exportation  practically  impossible. 
The  sudden  change  that  took  place  is  made  clear  in  the 
following  table: 

Bxportatlon  BzporUtion 

Jan.  to  Jaly,  incl.         Aiunut  to  Dae.,  incl. 
QDintali  (101.4  IM.) 

1913  30,481,463        39,047,647 

1914  30,538,756         9,608,707 

The  decline  in  national  revenues  from  this  source  alone 
has  been  as  follows: 

REVENUE  FROM  NITRATE  EXPORT  TAX 

Dollars  American  Gold 

1913     32,446,303 

1914     23,369,471 

Another  element  in  the  financial  situation  which  served 
to  place  the  pubhc  treasury  in  a  difficult  pos'tion  was 
the  rapid  decline  in  customs  revenues.  With  the  out- 
break of  the  European  War  the  import  trade  of  Chile 
came  to  a  standstill.  This  was  due  in  part  to  the 
temporary  paralyzation  of  steamship  communication, 
although  the  permanent  underlying  cause  was  the  cut- 
ting off  of  European  credits  and  the  inability  of  local 

'  Commerce  Reports,  March  39,  1915. 


14 


THE  EARLY  EFFECTS  OF 


merchants  to  meet  the  new  trade  conditions  created  by 
the  war.  The  Chilean  merchants  were  accustomed  to 
a  system  of  long  term  credits,  and  the  sudden  change 
to  the  requirements  of  cash  transactions  crippled  the 
purchasing  power  of  most  of  the  commercial  houses. 

It  is  not  siu*prising,  therefore,  to  find  that  the  customs 
receipts  for  1914  were  $7,188,558  less  than  those  of 
1913,  i.e.,  $16,417,136  as  compared  with  $23,555,694. 
That  this  decUne  continued  during  the  year  1915  is 
shown  by  the  fact  that  whereas  the  customs  receipts 
during  the  first  three  months  of  1913  (January  to  March 
inclusive)  were  $5,039,123  the  receipts  dwing  the  same 
period  of  1915  were  less  than  half  this  amount, 
$2,353,658. 

Confronted  with  the  prospect  of  inability  to  meet  the 
ordinary  requirements  of  the  public  administration,  the 
government  was  compelled  to  have  recourse  to  a  series 
of  emergency  measures  of  which  the  most  important 
were  as  follows:* 

1.  Law  of  March  1,  1915,  reducing  by  from  five  to 
fifteen  per  cent  salaries  of  officials  of  the  national  gov- 
ernment as  well  as  all  pensions. 

2.  Law  of  March  1,  1915,  imposing  the  following 
export  tax  on  borax: 

(a)  During  the  first  two  years  after  enactment  of 
the  law  $2.50  American  gold  per  metric  ton. 

(b)  Thereafter  $3.65  per  metric  ton. 

3.  Law  of  February  5,  1915,  establishing  an  in- 
heritance tax: 

(a)  Of  from  one  to  four  per  cent  on  bequests  to 
lineal  heirs. 

(b)  Of  five  per  cent  on  all  collateral  inheritances. 

(c)  Of  ten  per  cent  on  bequests  to  persons  bearing 
no  blood  relation  to  the  testator. 

All  bequests  to  the  Church  are  exempt  from  this  tax. 

*  The  further  emergency  measures  intended  to  help  the  bunking  situation 
and  to  assist  the  nitrate  industry  will  be  discussed  in  a  subsequent  section. 


THE  EUROPEAN  WAR  UPON  CHU.E 


15 


4.  Law  of  March  1,  1915,  establishing  a  national 
general  property  tax  of  from  two  to  four  mills.  Here- 
tofore  the  general  property  tax  has  been  exclusively 
municipal  and  the  new  national  tax  is  based  entirely 
on  the  mimicipal  tax,  being  collected  as  a  surtax  on 
the  assessments  made  for  mimicipal  taxation.  The  law 
provides  that  the  national  tax  shall  be  two  mills  on  real 
estate  in  Santiago,  Valparaiso,  Vifia  del  Mar,  and  all 
other  cities  in  which  a  special  local  paving  and  drainage 
tax  exists,  and  four  mills  on  real  estate  in  all  other  sec- 
tions of  the  Republic.  The  national  rate  on  personal 
property  is  fixed  at  four  mills  in  all  parts  of  the 
country. 

While  these  additional  taxes  will  add  considerably  to 
the  national  revenues,  it  is  not  likely  that  they  will  be 
sufficient  to  balance  the  budget.  Fortunately,  the  last 
few  months*  have  witnessed  a  notable  revival  of  the 
nitrate  industry.  The  large  demand  of  the  powder 
manufacturers  has  advanced  the  price  to  a  point  higher 
than  before  the  outbreak  of  the  war.  Exportation  has 
again  assumed  normal  proportions  and  there  is  every 
indication  that  it  will  soon  exceed  the  normal.  The 
result  is  that  the  revenue  from  the  export  tax  will  be 
considerably  larger  than  was  estimated  in  the  budget. 
The  indications  are  therefore  that  the  deficit  for  the 
year  1915  which  seemed  inevitable  at  the  opening  of  the 
year  will  either  disappear  or  wiU  be  greatly  reduced. 
It  probably  will  be  necessary  to  fund  the  standing  defi- 
cits of  the  preceding  years  by  means  of  a  loan,  although 
the  government  fully  realizes  that  owing  to  the  high 
prevailing  rates  of  interest  the  conditions  are  unfavorable 
to  any  funding  operations. 

The  national  debt  is  classified  into  two  distinct  cate- 
gories, the  "external"  and  the  "internal"  debt.  The 
"external"  debt  is  as  follows: 

'  This  was  written  in  1915. 


16 


THE  EARLY  EFFECTS  OF 


T«u 

BMaoT 

iaUNM 

PWCMt 

Haklai 
Par  CM 

I88S 

♦H 

% 

ISM 

♦H 

% 

1867 

♦% 

% 

18M 

♦% 

% 

1899 

5 

H 

18M 

6 

1 

1893 

♦% 

y^ 

1895 

4% 

H 

1896 

5 

% 

1896 
1900 

4% 

3 

1905 

5 

1 

1906 

4% 

i 

1909 

5 

% 

1910 

5 

I 

1911 

5 

1 

1911 


1911        KVn 


1% 


Oricliial  AaCMrt 

Khm  «r  lOM  aaoaat         MUuadlag 

. — Pdu4*  ttarliag — . 

Chikmn  Govenunent  4H 
per  cent  louis  of  1885. .     806,900 
Chilean  Goremment  4% 
per  cent  loan*  of  1866. .  6^)10,000 
Chilean  (joremmcnt  4^ 
per  rent  loan  of  1887..  1,160,900 
Chilean  Coremment  4% 
per  cent  gold   loan  of 

1889  1,546,400 

Chilean     Uoremment     5 

per  cent  loan  of  1899. .  1,800,000 
Chilean     Uovemment     6 

per    cent    international 

loan  of  1899 149,000 

Chilean  Uovemment  4^ 

per  cent  bonds  of  1893. .      630,C00 
Chilean  Uovemment  4^ 

per  cent  loans  of  1895. .  9,000,000 
Chilean  Government  4Vi 

per  cent  loans  of  1896. .  4/)fl0,000 

Penuelas  loan 300.000 

Chilean  Uovemment  \y» 

per  cent  Coquimbo  Rail- 
way bonds 365/)00 

Chilean     Government     5 

per  cent  loan  of  1905..  1,350,000 
Chilean  Government  \ya 

per  cent   gold  loan  of 

1906  3,700,000 

Chilean    Uovemment     5 

per  cent  loan  of  1909..  3^)00,000 
Chilean     Government     5 

per  cent  loan  of  1910. .  9,600,000 
Chilean     Govemment     5 

per  c^nt  loan  of  1911, 

first  series 4,905,000 

Chilean     Uovemment     5 

per  cent  loan   of  1911, 

second  series    5,000,000 

Chilean  Uovemment  4^ 


ptk* 


53M00 

89 

4,906,700 

»% 

817,500 

97% 

1,993.640 

101% 

1,447,300 

•5 

90,590 

495,700 

1,661,300 

vs,yt 

3,436,700 
74,400 

95% 

399,160 

1,356,700 

95% 

3,981,990 

94% 

9,934,700 

96% 

9,517,040 

99 

4,809,180 

98% 

4,948,300 

98% 

965,980 

33,913,340 

per  cent  bonds  (Copiapo 
Railway  bonds) 37':,Q0O 

Total    external    debt    of 
Chilean  Government  . .  .39,399,500 

To  the  above  there  should  be  added  2,000,000  pounds 
sterling  of  treasury  notes  floated  in  London.  In  ad- 
dition, the  government  has  guaranteed  the  following: 

(a)  A  loan  of  the  Iron  Smelting  Co.  of  Corral,  for 
525,000  pounds  sterling. 

(b)  The  bonds  issued  by  the  Transandine  Railway 
Co.  amounting  to  1,450,000  pounds  sterling. 


THE  EUROPEAN  WAR  UPON  CHILE  17 

(c)  The  bonds  issued  by  the  Longitudinal  Railway 
Contracting  Co.  amounting  to  about  7»000,000 
pounds  sterling. 

The  so^alled  "  internal "  debt  is  made  up  as  follows: 

I.  ObUgatiotu;  fncumd  in  Treaty  of  Peace  wJth 

*<»"»*•    5fi3i,SSSM 

Paper  Pt  "~ 
a.  Municipal  indebtedness  assumed  by  the  national 

gwremmenf    9.939^ 

a.   censos  nediinidos   3)1,450.431  46 

♦.   Internal  loan  of  1837  (3%) M»4,773.'o6 

4.  Paper  money  (against  which  a  conversion  fund 

is  draosited  In  Europe) I50,000/)00.00 

o.   Early  issues  of  paper  money 863,803.00 

•The  total  "external"  indebtedness  of  ChUean  municipalities  amounts  to 


CKA^    ER  IV 

EFFECT  OF  THL  '  VAR  ON  CURRENCY  AND 

BANKING 

This  subject  is  so  closely  related  to  the  question  of 

n^ssanly  mvolves  the  other.     The  Chilean  cumn^ 

rr  "^^"'aT,*''  f  ^1^'  "'^^  nomiT^Su^ 
IS  18  pencp  or  36.5  cents  American  irold.  Until  lAOft 
^e  convertibihV  of  the  peso  was  maiSSLdrSu  siS 
«iat  time  a  system  of  inconvertible  paper  money  wfth 
fluctuatmg  value  has  prevailed.  The  exten^^f  I^«. 
fluctuations  has  been  as  follows?  ^"""^ 


smce 

a 


1899 
1900 
1901 
1902, 
1903, 
1904. 
1905. 


VALUE  OF  CHILEAN  GOLD  PESO  IN  ENGLISH  PENCE 
(Nominal  Value  l8d.) 

Averaxe  value  in  a—  .      . 

AveraM  value  in 
1906  English  Pence 

'«'»  1907  .'.■.■.■;.■ 

{t%  1908 

If  fi«  1909 

•»%  1910 

8%  1911 ::;;; 

15%  1912 


race 
English  Pence 
1*% 


.12% 

•  »% 
10% 

ios9fc 
1096 

10% 


?„S.*^'  ^*  *^°  y^"^  *^«  fluctuations  have  been 


as  follows: 


VALUE  OF  CHILEAN  PAPER  PESO  IN  ENGLISH  PENCE 


191S 

{tnuary loaL 

februarjr "lOV^- 

March low! 

April 10^ 

**»y :::::;  93"^ 

June 02o2. 

July :;: gjf 

August ;■ 9U4- 

September gw^ 

October 913L 

November 994, 

December 9»%2 

Average  for  year.'.".".'. .'.'.'.'  ~9^    ' 
18 


1914 
d. 

83%2 
92%S 
S^ 


EPPECTS  OP  WAR  TTON  CHILE  19 

This  constantly  fluctuating  currency  has  been  a  serious 
obstacle  to  the  development  of  Chilean  commerce  as 
well  as  a  constant  discouragement  to  the  investment  of 
foreign  capital.  The  uncertainties  of  the  situation,  the 
constant  danger  of  finding  profits  swept  away  by  reason 
of  falling  exchange  have  not  only  been  a  handicap  to 
commercial  transactions  but  have  introduced  an  element 
of  speculation  into  international  trade  which  has  been 
harmful  to  the  country.  Commission  houses  in  Chile 
m  order  to  protect  themselves  against  losses  due  to  fluc- 
tuations in  exchange  are  compeUed  to  go  into  the  market 
and  purchase  Chilean  exchange  to  the  amount  of  their 
sales  for  delivery  ninety  days  from  date,  i.e.  when  pay- 
ment for  the  goods  they  have  sold  becomes  due. 

During  the  last  fifteen  years  the  leading  problem  con- 
frontmg  the  Chilean  government  has  been  the  reestablish- 
ment  of  the  convertibility  of  the  paper  peso.  A  "  con- 
version fund,"  which  today  amounts  to  $38,495,390  in 
American  gold,  has  been  maintained  in  Europe.  In- 
numerable projects  have  received  the  consideration  of 
the  government,  but  there  has  always  been  an  influential 
element— the  large  landowners— who  while  publicly  fav- 
oring a  conversion  plan  are  in  reality  in  favor  of  main- 
tammg  the  present  system,  which  permits  them,  for  all 
exported  products,  to  receive  payment  in  gold,  while  they 
are  paymg  their  laborers  in  a  depreciated  paper  currency. 
During  the  last  ten  years,  however,  the  laboring  classes 
have  been  acquiring  some  little  influence  in  public  affairs. 
They  have  seen  with  increasing  clearness  that  they  are 
the  main  suflFerers  by  reason  of  a  depreciating  currency 
—their  money  wages  remaining  practically  the  same, 
while  the  purchasing  power  is  constantly  declining. 

After  a  long  series  of  discouraging  postponements,  a 
plan  was  finaUy  evolved  by  which  the  convertibility  of 
the  paper  peso  was  to  be  reestablished  in  1915.  This 
plan  provided  for  the  establishment  of  an  institution  to 
be  known  as  the  "  Caja  de  Conversion  "  to  be  managed 


so 


THE  EARLY  EFFECTS  OF 


•I  I 


by  a  board  of  six  directors  to  be  appointed  by  the 
President  of  the  Republic,  two  to  be  approved  by  the 
Senate  and  two  by  the  Chamber  of  Deputies.  Under 
the  plan  as  approved  by  the  Senate,  the  conversion  was 
to  be  made  on  the  basis  of  twelve  pence  gold  to  the 
peso  and  a  fixed  rate  of  exchange  to  be  maintained  at 
that  point  thereafter.  In  the  Chamber  of  Deputies  this 
rate  was  reduced  to  ten  pence. 

In  spite  of  this  deadlock,  the  conditions  seemed  favor- 
able to  the  carrying  out  of  some  definite  plan  in  1915. 
The  I'nancial  crisis  precipitated  by  the  European  War 
put  an  immediate  end  to  all  thought  of  an  early  solution 
of  the  problem.  Congress  immediately  postponed  imtil 
1917  the  date  at  which  the  convertibility  of  paper  money 
should  be  established.  Unless  financial  conditions  both 
in  Chile  and  in  the  world  at  large  improve  considerably 
during  the  coming  year  it  is  likely  that  Chile  will  be 
compelled  to  postpone  for  a  further  period  the  reform  for 
which  her  merchants  have  been  waiting  so  long — the 
establishment  of  a  stable  currency  system. 

In  spite  of  the  fact  that  the  "  Conversion  Fund " 
amounts  to  more  than  twelve  pence  per  peso  in  circu- 
lation, the  effect  of  the  war  was  to  cause  a  rapid  decline 
of  exchange  to  less  than  eight  pence.  Although  it  has 
recovered  somewhat,  the  prevaihng  rate  during  the  first 
six  months  of  1915  was  less  than  nine  pence.  This  has 
been  due  in  part  to  the  unfavorable  trade  balance  and 
in  part  to  the  speculative  manipulation  of  exchange. 
The  amount  of  paper  currency  in  circulation  at  the  end 
of  1913  was  150,863,803.50  pesos. 

In  Chile,  as  in  all  the  other  countries  of  South  America, 
the  outbreak  of  the  war  led  to  a  financial  panic  which 
caused  heavy  withdrawals  of  bank  deposits.  In  order 
to  avert  disaster  the  first  step  taken  by  the  banks  was 
to  avail  themselves  of  the  provisions  of  the  law  of  May 
11,  1912,  which  created  a  "  Central  Office  of  Issue  "  and 
authorized  the  banks  to  receive  paper  money  in  exchange 


THE  EUROPEAN  WAR  UPON  CHILE  21 

for  gold  deposited  at  the  rate  of  one  peso  paper  for 
every  twelve  pence.  The  extent  to  which  use  was  made 
of  this  emergency  circulation  is  evidenced  by  the  fact 
that  on  August  3.  1914,  at  the  height  of  the  financial 
stress,  33,000,000  pesos  were  issued  to  three  local  banks 
m  Santiago.  Of  the  total  emi..io..  of  55,481,590  pesos 
issued  under  this  law  a  cons  Jerable  pi>,!..n  had  been 
retu-ed,  so  that  on  July  31,  \9U,  but  25.jJ20,000  pesos 
remained  m  circulation. 

As  a  further  measure  to  reheve  the  slrain  caused  by 
the  European  War  on  the  country's  banking  system,  the 
Congress  passed  a  law  (August  3,  1914)  providing  for 
the  issuance  of  treasury  notes  by  the  government.  The 
legislation  relating  to  this  subject  was  intended  not  only 
to  reheve  the  banking  situation,  but  also  to  assist  the 
nitrate  producers,  the  hope  of  the  government  being  that 
by  coming  to  their  aid,  it  would  be  possible  to  induce 
them  to  contmue  operations  and  thus  prevent  the  com- 
plete paralyzation  of  the  industry  and  the  widespread 
misery  which  would  be  entailed  in  throwing  out  of 
employment  sixty  or  seventy  thousand  men. 

The  emergency  laws  relating  to  this  subject  were 
passed  on  August  3  and  August  12,  1914,  and  are 
known  as  laws  Nos.  2912  and  2918.  The  first  relates 
to  treasury  notes  issued  to  the  banks  and  authorizes 
the  President  of  the  Republic  to  issue  for  a  period  of 
one  year  treasury  notes  of  denominations  of  five 
thousand,  one  thousand,  and  five  hundred  pesos  Chilean 
currency  These  notes  are  not  to  bear  interest  but 
are  legal  tender  for  all  obligations  payable  in  paper 
currency.  Under  the  provisions  of  the  law  banks 
may  secure  these  treasury  notes  under  the  following 
conditions :  * 

First.   Banks  desiring  these  notes  may  secure  them  by 

fnTr^'n^vf  Z      *^\»T™™""*  mortgage  "cedulas,"  a 
form  of  bond  issued  by  the  agricultural  credit  institutions. 


32 


THE  EARLY  EFFECTS  OF 


Notes  to  the  extent  of  ninety  per  cent  of  the  market  value 
of  such  "  cedulas  "  will  be  issued. 

Second.  For  the  use  of  these  notes  the  banks  are  re- 
quired to  pay  to  the  government  a  rate  of  interest  three 
per  cent  less  than  the  interest  charged  by  such  banks  to 
their  debtors. 

The  possibility  of  increasing  their  reserves  through 
these  treasury  notes  contributed  materially  toward  en- 
abling the  banks  to  tide  over  the  crisis  caused  by  the 
withdrawal  of  funds  by  depositors.  From  August  12, 
1914,  to  July  31,  1915,  the  government  issued  to  the 
banks  treasury  notes  to  the  amount  of  38,554,500  pesos. 
Of  this  total  the  banks  have  returned  for  cancellation 
33,100,000  pesos,  leaving  a  balance  of  5,454,500  pesos 
outstanding. 

Notes  of  a  similar  character  were  issued  to  producers 
of  nitrate.  The  conditions  of  this  issue  will  be  described 
in  considering  the  effect  of  the  European  War  on  com- 
merce and  industry  in  Chile.  Suffice  it  to  say  in  this 
connection  that  under  authority  conferred  by  the  law  of 
August  12,  1914,  the  government  has  issued  to  pro- 
ducers of  nitrate  treasury  notes  amovmting  to  39,300,500 
pesos.  Of  this  total  32,085,000  pesos  have  been  returned 
for  cancellation,  leaving  a  balance  of  7,215,500  pesos. 
Thus  the  total  of  treasury  notes  still  in  circulation  on 
July  31,  1915,  amounted  to  12,670,000  pesos. 

The  effect  of  the  European  War  on  the  banking 
situation  in  Chile  as  compared  with  that  produced  in  the 
other  countries  of  South  America  leads  one  to  the  con- 
clusion that,  relatively  speaking,  the  Chilean  banks  suf- 
fered but  little.  The  fact  that  the  country's  currency  is 
on  a  paper  basis  served  to  lessen  the  shock.  With- 
drawals of  gold  by  foreign  banks  were  met  by  the 
emergency  issues  described  above.  The  paper  currency 
enabled  the  banks  to  meet  the  threatened  contraction 
with  comparative  ease.    But  one  institution,  the  Banco 


THE  EUROPEAN  WAR  UPON  CHILE  23 

Italiano,  was  compelled  to  close  its  doors  and  the  general 
opinion  prevailing  in  financial  circles  is  that  the  failure 
was  not  due  primarily  to  the  war. 

The  most  serious  aspect  of  the  banking  situation 
was  the  eflFect  on  the  relations  existing  between  the 
banks  and  the  general  public.  Commerce  and  industry 
suffered  severely  from  the  sudden  restriction  of  credits. 
While  the  banks  took  this  step  as  a  measure  of  self- 
protection,  the  immediate  effect  was  to  bring  about  the 
paralyzation  of  trade.  Since  the  beginning  of  1915  there 
has  been  a  marked  tendency  toward  a  more  liberal  policy 
in  the  extension  of  bank  credits.  The  improvement  of 
the  nitrate  situation  has  had  a  buoyant  effect  on  the 
banks  and  has  led  them  to  grant  facilities  which  they 
consistently  refused  during  the  latter  half  of  1914.  The 
extent  to  which  credit  restriction  was  carried  can  be  seen 
from  a  comparison  of  the  bank  statements  for  1913  and 
1914  respectively: 

CHILEAN  BANKS 

191S  1914 

„        .,                              Pap«rPe»o«        O.  id  PeMt  18d.  Paper  PewM  Gold  Pe«o«  18d. 

°*P.°*"«    316,055.823.55      33,041,352.93  313,138,171.18      40341,725 

C«P»t"    142,371,047.00           .50'?,000.00  188,477340.00        2,131035 

Discou„ts;ioansand     ''''''''''■''              ''«"•«»  ^6.831,730.00        5,997,985 

»"*"""«    453,318.217.00                     3.00  418,613,893.00      16,715,293 

FOREIGN  BANKS 

1913  1914 

P«P«rPeto8         Gold  Pmm  18d.  Paper  Pmo«  Gold  Pe»og  18d. 

^«P"iS',t«   94,604,919            28,060,408  78,415,724  28327,621 

C«P»t«'    16,639.207              8,267,973  27,632312  3^73 

Di.tunt.:io.«.nd     '*''''''''  '''''''''  ''''''^''  ^'^'^•°«« 

"'**'*"'^«^s     137,797.623  31,220,208  93,898.825  32,519,997 

From  the  foregoing  tabic  it  will  be  seen  that  the 
foreign  banks  restricted  their  credits  to  a  far  u  neater 
extent  than  the  Chilean  banks.  This  was  a  source  of 
widespread  complaint  and  led  to  a  marked  feehng  of 
opposition  toward  the  foreign  institutions.    In  fact,  one 


S4 


EFFECTS  OF  WAR  UPON  CHILE 


U  II 


of  the  immediate  results  has  been  to  give  renewed  force 
to  the  agitation  for  legislation  requiring  banks  to  invest 
or  maintain  in  the  country  the  capital  they  declare  for 
use  in  Chile  and  also  limiting  their  deposits  in  proportion 
to  their  declared  local  capital. 

Although  it  cannot  be  said  that  the  banking  situation 
has  again  reached  normal  conditions,  the  danger  point 
has  been  passed  and  with  each  month  the  leading  banks 
are  strengthening  their  position  through  increasing  gold 
reserves  and  at  the  same  time  extending  their  usefulness 
to  the  commimity  through  a  more  hberal  credit  pohcy. 
As  regards  the  currency  situation,  there  is  noticeable 
b.  slight  tendency  toward  the  improvement  of  exchange. 


CHAPTER  V 

EFFECT  OF  THE  WAR  ON  COMMERCE 
AND  INDUSTRY 

Although  the  effects  of  the  general  world-wide 
depression  were  felt  in  Chile  throughout  the  year  1913 
and  during  the  six  months  of  1914  immediately  pre- 
ceding the  outbreak  of  the  European  War,  the  acuteness 
of  the  depression  was  not  so  marked  as  in  the  other 
leading  countries  of  South  America,  notably  the  Argen- 
tine, Brazil,  and  Peru.  The  main  reason  for  the  more 
favorable  situation  of  Chile  has  been  referred  to  in  a 
preceding  section,  viz.:  the  local  situation  was  not  ag- 
gravated by  a  reaction  against  a  long  period  of  specu- 
lative inflation,  such  as  characterized  Argentine  and 
Brazilian  commercial  conditions  during  the  years  1910 
to  1913,  inclusive.  While  it  is  true  that  world  conditions 
were  not  favorable  either  to  the  nitrate  or  to  the  copper 
market — the  two  great  products  of  Chile — the  depression 
was  not  sufficient  to  lead  to  any  serious  curtailment  of 
production.  In  fact,  during  the  months  of  May,  June, 
and  July,  1914,  there  were  marked  indications  of  a 
healthy  renewal  of  business.  It  was  generally  expected 
that  the  year  would  end  with  a  record  of  real  improve- 
ment over  1913. 

The  war  came  as  a  blight  to  all  these  prospects.  The 
fact  that  Chile  is  essentially  a  "  one-product  coimtry  " 
and  that  not  only  the  general  prosperity  of  the  country 
but  also  the  stability  of  government  finances  are  de- 
pendent on  the  conditions  of  the  nitrate  markot,  means 
that  any  influence  that  seriously  affects  the  demand  for 
nitrate  immediately  reacts  throughout  the  entire  country. 
The  European  War,  at  one  blow,  practically  destroyed 

25 


26  THE  EARLY  EFFECTS  OF 

the  nitrate  market,  for  the  time  being.  Up  to  the  out- 
break of  the  war  Europe  was  the  great  market  for  this 
product,  as  will  be  seen  by  examining  the  export  figures 
for  1918  and  1914. 

EXPORT  OF  NITRATE 
(Metric  Tons) 

1913  1914 

Great  Britain   1,004^79  607,022 

Gennany     629,298  303.334 

France  121,473  67,128 

Belgium    118,690  7iJ063 

Netherlands   100,379  T?4l4 

Italy     10,684  18,231 

United  States   630,790  536,799 

Otlier  Countries  122,731  162^73 

Total   2,739,023  1,846,783 

The  imcertainties  of  transportation  due  to  the  presence 
of  belligerent  fleets  in  the  Pacific  con.pletely  paralyzed 
shipping  and  thus  made  it  impossible  to  meet  even  the 
reduced  demands  of  Europe.  The  importance  of  nitrate 
as  a  factor  in  the  international  trade  of  Chile  is  seen  from 
the  fact  that  in  1913  it  represented  $111,454,397  out  of 
a  total  export  of  $142,801,576. 

The  misery  entailed  on  the  laboring  classes  will  be 
discussed  in  a  subsequent  section.  As  regards  the  nitrate 
producers  they  found  themselves  facing  a  situation  which 
threatened  ruin.  During  the  first  six  months  of  1914 
the  production  of  nitrate  was  32,148,999  quintals  of  101.4 
pounds  as  compared  with  30,092,777  quintals  during  the 
first  six  months  of  1913.  Exportation  during  the  first 
six  months  of  1914  was  24,144,211  quintals  as  compared 
with  26,922,030  for  the  same  period  of  1913.  The  fol- 
lowing comparison  of  production  and  exportation  illus- 
trates the  situation  immediately  preceding  and  immedi- 
ately following  the  outbreak  of  the  European  War. 

Jan.-July  Aug.-Dec. 

(inclusive)  (inclusive) 

Quintals  Quintals 

Production  of  nitrate  (1913) 35388.H11  37,862,106 

Production  of  nitrate  (1914) 39,963,956  15,689,115 

Exportation  of  nitrate  (1913) 30,481,463  29,047,647 

Exportation  of  nitrate  (1914) 30,538,756  9,608,707 


THE  EUROPEAN  WAR  UPON  CHILE 


27 


Not  only  did  prices  drop  violently  but  for  a  time 
there  was  practically  no  market  at  any  price.  By  Feb- 
ruary, 1915,  the  price  had  declined  to  five  shillings  eight 
pence  per  quintal  and  the  number  of  plants  in  operation 
was  reduced  from  134  to  43.  The  general  closing 
down  of  the  nitrate  plants  threatened  to  create  a  critical 
labor  situation.  In  normal  times  about  53,000  laborers 
are  employed  in  this  industry,  earning  on  an  average 
6.48  Chilean  paper  pesos  per  day,  which  at  the  then 
rate  of  exchange  is  equivalent  to  $1.02  American  gold. 
The  arid  character  of  the  nitrate  district  makes  it  im- 
possible to  transfer  this  labor  to  other  employment  in 
the  same  region  during  periods  of  depression.  Further- 
more, the  laborer  in  the  nitrate  fields  is  accustomed  to 
a  higher  standard  of  life  than  the  agricultural  laborers 
of  the  South. 

As  soon  as  the  nitrate  plants  began  to  close  down  the 
government  addressed  itself  to  the  problem  of  transport- 
ing the  laborers  to  the  agricultural  provinces.  Thirty 
thousand  were  thus  transferred.  We  shall  have  occasion 
to  refer  to  the  results  of  this  transfer  in  considering  the 
labor  situation  created  by  the  European  War.  Refer- 
ence is  made  to  the  matter  in  this  connection  in  order 
to  explain  the  motives  that  led  the  government  to  come 
to  the  rescue  of  the  nitrate  industry  through  special 
legislation  intended  to  encourage  the  continued  operation 
of  the  plants. 

On  August  2,  1914,  the  Congress  passed  a  law  author- 
izing the  President  of  the  Republic  to  advance  to  such 
nitrate  producers  as  agreed  to  continue  the  operation  of 
their  plants  the  sum  of  three  Chilean  pesos  (at  the  then 
rate  of  exchange  49  cents)  per  Spanish  quintal  of  nitrate 
in  stock  at  the  plant  or  four  pesos  for  each  quintal 
deposited  at  any  of  the  ports  of  the  Republic.  The 
original  act  provided  that  no  such  advances  were  to  be 
made  after  December  31,  1914,  but  a  subsequent  law 


28  THE  EARLY  EFFECTS  OP 

(that  of  January  4,  1915)  extended  the  period  for  a 
further  six  months. 

Up  to  January  31,  1915,  sixty-seven  nitrate  producers 
had  availed  themselves  of  the  privilege  accorded  by  the 
Jaw,  receivmg  advances  amounting  to  87,713,455..0  paper 
pesos.  Of  this  total  9,813,544.77  have  been  repaid  to 
the  government,  leaving  a  balance  of  27,899,910.23  pesos 
outstandmg. 

Since  the  first  of  February,  1915,  the  nitrate  situation 
has  been  gradually  improving.  During  the  months  of 
May,  June,  and  July,  1915,  the  improvement  has  been 
so  rapid  that  at  the  present  moment  (September, 
1915)  the  mdustry  has  ahnost  reached  a  normal  level. 
In  fact,  the  only  obstacle  to  complete  restoration  has 
been  the  absence  of  an  adequate  labor  supply.  With 
the  return  of  the  laboring  population  that  was  trans- 
ported to  the  southern  provinces  at  the  outbreak  of  the 
war,  all  the  plants  will  be  placed  in  full  operation.  The 
main  reason  for  this  rapid  improvement  has  been  the 
advancmg  demand  for  nitrate  by  the  powder  factories 
of  the  United  States.  With  this  increasing  demand 
prices  have  advanced  steadily.  Instead  of  being  unsal- 
able at  five  shillings  eight  pence  per  quintal,  as  was  the 
case  soon  after  the  outbreak  of  the  war,  the  quotations 
m  September  reached  and  passed  the  eight  shilling  mark. 
The  price  range  during  the  last  two  years  has  been  as 
foUows: 

RANGE  OF  PRICE  PER  QUINTAL 

^)?,&i*'*.o;o 7s.  9%d.  to  8s.  (81.89  to  $1.94) 

Septemfe^r,  1913   gs.  "is.  lid.  (  1.94   "     1.92) 

A,.KUst,19I4       7s.  y^d.     "6s.  lOd.  (  1.71   "     l.M) 

Septerobf  r,  191* 6s.  r  1 46  \ 

octobf f,  mt  «s.  (  lie  \ 

July.  1915    78.  7d.  )  IM  { 

August,  1915 8s.  (  ligi  j 

The  Coppee  Ijt^tstry 

The  effect   of   the   European   War   on   the   copper 
mdustry  in  Chile  has  been  practically  the  same  as  in 


THE  EUROPEAN  WAR  UPON  CHILE  99 

Peru.  Unsatisfactory  conditions  prevailed  in  the  copper 
market  since  1910.  Prices  steadily  declined  from  eleven 
cents  m  1910  to  ten  cents  in  1914.  With  the  outbreak 
of  the  war  the  mdustry  suflFered  temporarily  because  of 
a  lark  of  shipping  facilities,  but  the  increasing  demand 
for  joppcr  for  the  manufacture  of  war  materials  led  to 
a  steady  advance  in  price.  Although  freight  rates  have 
risen,  the  increase  has  not  been  sufficient  to  discourage 
the  development  of  the  industry.  The  two  great  plants. 
El  Teniente  and  "El  Cbiqucamata."  are  now  work- 
ing to  their  full  present  capacity  and  this  is  also  true  of 
the  smaUer  enterprises.  The  value  of  the  exports  of 
copper  m  1914  as  compared  with  1913  is  as  follows: 

S^7^n.v..-.-.::;;:::;:::::::::  1^     »;K 

copper  ore   5^10,869  1^13^13 

These  figures  give  but  an  inadequate  idea  of  the  extent 
of  the  revival  of  the  copper  industry,  as  the  effect  of  the 
increasing  world  demand  for  copper  did  not  make  itself 
telt  until  well  toward  the  end  of  1914. 


Agricultuke 

Inasmuch  as  Chile  is  not  an  exporter  of  agricultural 
products  to  any  considerable  extent,  the  European  War 
cannot  be  said  to  have  had  a  marked  effect  on  the 
agricultural  situation.  The  temporary  closing  of  the 
nitrate  fields  during  the  latter  half  of  1914  deprived 
the  farmers  of  the  South  of  an  important  market  for 
their  products,  but  this  was  merely  a  temporary  setback 
from  which  full  recovery  has  been  effected. 

Domestic  and  International  Trade 

With  the  exception  of  the  laborers  in  the  nitrate 
fields,  no  class  of  Chilean  society  has  suffered  so  severelv 
from  the  effects  of  the  war  as  the  wholesale  and  retail 


flO 


THE  EARLY  EFFECTS  OF 


■ 


merchants.  From  whatever  point  of  view  we  approach 
the  situation,  it  is  evident  that  all  the  iniluencfis  set  in 
operation  by  the  European  War  tended  to  make  their 
position  increasingly  difficult.  The  restriction  of  credits 
by  the  banks  made  it  impossible  to  secure  the  customary 
accommodations,  falling  exchange  served  further  to  re- 
duce the  little  credit  that  remained  in  the  foreign  market, 
and  the  widespread  unemployment  amongst  the  laboring 
classes  led  to  a  serious  decline  in  the  amount  of  business 
transacted. 

The  restriction  of  European  sources  of  supply  for 
manufactured  goods  led  the  merchants  of  the  country 
to  look  to  the  United  States  as  a  possible  source  of 
supply,  but  here  they  were  confronted  by  the  refusal 
of  American  manufacturers  to  grant  the  long  term 
credits  to  w'  -"h  the  Chilean  merchants  had  been  ac- 
customed and  without  which  they  were  unable  to  make 
any  large  purchases. 

In  the  discussion  of  the  effects  of  the  European  War 
on  the  nitrate  industry  we  have  'ncidentally  referred  to 
the  temporary  paralyzation  of  tht  •  xport  trade  in  this, 
the  most  important  of  Chilean  products.  Although 
nitrate  suffered  more  severely  than  other  articles  of 
export  a  comparison  between  the  figures  of  1913  and 
1914  indicates  a  general  falling  off,  with  the  exception 
of  copper  bars  and  barley. 


VALUE  OF  EXPORTS  OF  CHILEAN  PRODUCTS,  1913-1914 

191S  1914 

Nitrate    $111,454397  $77,117,063 

Copper  bars   5,593,540  7,135,015 

Copper  ore   5310,869  1,912313 

Copper  concentrates  2,432,942  1,867,214 

Wheat  2390,727  199,775 

Hides    1.537.850  918,260 

Barley    303361  1,677,078 

Quillay  bark  90,639  132,857 

The  total  value  of  exports  sent  to  the  various  countries 
during  the  years  1913  and  1914  was  as  follows: 


THE  EUROPEAN  WAR  UPON  CHILE  31 

DISTRIBUTIOK  OP  EXPORTS,  1913-1914 

1913  1914 

uSjtld   sS    fMA*8,341  .5M»^I306 

Ge™.nv             30,413,384  31,437,890 

r!™»"y    30,772,T4J  18,079Sm 

S*',fi""?   5,67V«9  3.444,458 

ASf„ 4,470.103  3,990,995 

Argentine l,0»t,880  ijsu^ 

These  figures  indicate  a  marked  falling  off  in  the 
exports  to  all  countries  with  the  exception  of  the  United 
States  and  the  Argentine.  As  regards  the  former,  it  is 
explained  by  the  recovery  of  the  copper  and  nitrate 
shipments  toward  the  end  of  1914.  In  the  case  of  the 
Argentine  the  increase  is  due  to  the  demand  for  dried 
fruits  and  vegetables. 

The  European  War  has  had  a  disastrous  effect  on  the 
import  trade,  due,  in  part,  to  the  crippHng  of  shipping 
facilities  from  Europe,  but  mainly  to  the  shutting  off 
of  European  credits  and  the  inability  of  the  Chilean 
merchants  to  establish  such  credits  in  the  United  States. 

In  1913  the  total  imports  were  $120,254,731.  They 
declined  to  $108,461,095  in  1914.  Imports  from  the 
United  States  held  their  own,  whereas  those  from  Eu- 
rope suffered  a  severe  decline.  The  increase  of  imports 
from  Australia  and  Peru  were  due  to  heavy  shipments 
of  coal  and  sugar  respectively. 


CHILEAN  IMPORTS,  1913-1914 

1913  1914 

J^""y ,,,• ; $29,598,138  $25,889,770 

ir^fii  e    t      35.928,943  22,309,086 

F,-n.          *"  20,089,158  20,148,575 

ll^^^,f-   6,623.260  4,106,107 

?'•»'"'?    5,673,426  4.151,372 

tir^"""    3,262,653  2,164^35 

i"°?     3,187,0*3  1.979,472 

14,?,    3,176,284  1,976,512 

^""    •,: 4,810,475  5380,220 

■^"S*™'«   3,343,831  6,270,379* 

♦„  11^!^"!!^''  "V^""-  ^^'■*!  relating  to  exports  and  imports  the  writer  desires 
S.nSTtl^Uro'^"^'""^  *"  '''  »""•  ^-  '    «--'  ^-'-''  Consul 


at  THE  EARLY  EFFECTS  OF 

The  violent  fluctuations  of  Chilean  currency  since  the 
outbreak  of  the  war  have  been  another  factor  that  has 
entered  to  discourage  increasing  importations.  Inas- 
much as  such  imports  must  be  paid  in  gold  and  are 
sold  for  paper  currency,  there  necessarily  exists  consid- 
erable uncertainty  with  reference  to  profits.  A  sudden 
fall  in  exchange  may  wipe  out  all  prospective  profits. 
There  exists,  therefore,  on  the  part  of  all  merchants  who 
do  not  wish  to  incur  speculative  risks  a  tendency  to 
await  a  period  of  more  stable  exchange  before  under- 
taking large  purchases. 


Emeboency  Measubes  Adopted  to  Enable  Mebchants 
TO  Meet  Conditions  Created  by  the  Wab 

a.    Moratoria 

One  of  the  first  measures  adopted  was  the  Act  of 
August  7,  1914,  declaring  a  moratorium  of  thirty  days 
for  all  bills  of  exchange,  notes,  and  drafts  payable  dur- 
ing the  month  of  August.  This  law  also  gave  authority 
to  the  President  to  extend  the  moratorium  for  a  further 
period  of  thirty  days.  A  little  later,  September  7,  1914, 
an  act  was  passed  establishing  a  moratorium  of  sixty 
days  for  all  obligations  payable  in  gold  entered  into 
prior  to  August  1,  1914,  and  which  fell  due  between 
that  date  and  November  1.  During  this  period,  how- 
ever, the  debtor  was  required  to  pay  interest  at  the 
stipulated  rate  or,  if  no  such  rate  had  been  agreed  upon, 
at  the  current  rate  of  interest.  Creditors  could,  how- 
ever, demand  the  payment  of  the  amount  due  at  the 
time  when  due,  if  they  were  willing  to  accept  in  payment 
Chilean  paper  money  at  the  rate  for  ninety-day  drafts 
on  London  or  at  the  rate  fixed  by  the  government  for 
the  payment  of  customs  dues.  The  President  of  the 
Republic  was  authorized  by  this  law  to  extend  this 
moratorium  for  a  period  of  thirty  days.  By  decree  of 
October  29,  1914,  he  made  use  of  this  power. 


THE  EUROPEAN  WAR  UPON  CHILE  38 

The  Act  of  February  5,  1915  (Law  No.  2980),  pro- 
vided  for  an  additional  extension  of  ninety  days  of  the 
moratorium  for  obligations  due  in  gold  and  authorized 
the  President  to  make  further  extensions  for  periods 
of  sixty  days  until  September  1,   1915.    By  a  series 
of  decrees,  the  last  of  which  was  issued  August  9,  1915, 
the  moratorium  for  such  obligations  was  extended  until 
September  1,  1915.    The  Act  of  February  5,  1915,  also 
provided  for  a  period  of  four  months'  grace,  without 
right  of  protest,  on  all  international  commercial  obliga- 
tions   contracted    by    merchants    in    ChUe    with    firms 
resident  m  belligerent  countries  or  in  countries  under 
moratorium.    The  four  months'  period  ran   from  the 
date  on  which  the  obligation  fell  due  and  was  only 
applicable  to  obligations  contracted  prior  to  August  1, 
1914.    The  President  was  given  power  to  extend  this 
moratorium  for  periods  of  thirty  days  until  September 
1,  1915.    Availing  himself  of  this  power,  he  published 
a  series  of  decrees,  the  latest  being  dated  August  9, 
extending  the  period  of  grace  to  September  1,  1915. 

b.    Exportation  of  Cattle  and  Food  Products 

By  Act  of  August  3,  1914,  the  President  was  au- 
thorized to  prohibit  the  exportation  of  cattle,  food 
products,  and  coal  for  such  period  as  he  might  deem 
advisable.  The  same  act  gives  to  the  President  the 
power  to  suspend  customs  dues  on  food  products  in 
all  cases  in  which  the  wholesale  price  of  such  products 
exceeds  the  price  quoted  during  the  first  two  weeks  of 
July,  1914. 

On  August  4,  1914,  the  President,  availing  himself  of 
the  power  thus  conferred  upon  him,  issued  a  decree  pro- 
hibiting the  exportation  of  cattle  and  coal,  and  of  a  long 
list  of  food  products.  By  a  later  decree,  that  of  March 
4,  1915,  the  import  duty  of  thirty-six  cents  per  hundred 
pounds  on  wheat  flour  was  suspended  until  June  30 
1915. 


84 


THE  EARLY  EFFECTS  OF 


rm  • 


TSANSPOSTATION    FACILITIES   AS    AfFECTED    BY 
THE  WaB 

One  of  the  most  serious  consequences  of  the  European 
War  has  been  the  crippling  of  transportation  facilities 
between  Chile  and  the  European  countries  from  which 
the  supplies  of  manufactured  products  were  obtained. 
It  is  true  that  the  paralyzation  was  temporary,  but  even 
after  the  battle  of  the  Falkland  Islands,  when  the  last 
of  the  German  cruisers  were  driven  from  American 
waters,  the  scarcity  of  bottoms  was  such  that  Chilean 
products  were  compelled  to  wait  at  the  docks  for 
months  for  available  cargo  space.  When  shipping 
facilities  could  be  secured,  it  was  found  in  many 
instances  that  freight  rates  had  advanced  to  such  an 
extent  that  either  shipment  was  impossible  or  the  pos- 
sible profits  of  the  transaction  were  considerably  reduced 
by  reason  of  the  inordinately  high  transportation 
charges. 

Prior  to  the  outbreak  of  the  European  War  the 
steamship  lines  serving  the  West  Coast  of  South  America 
had  reached  an  agreement  with  reference  to  rates  from 
Valparaiso  to  New  York  and  Liverpool  via  Panama 
or  Magellan.  With  the  outbreak  of  the  conflict  these 
schedules  were  thrown  to  the  wind  and  a  system  of 
charging  "  what  the  traffic  would  bear  "  was  inaugurated. 
Since  August,  1914,  freight  rates  have  been  subject  to 
the  most  violent  fluctuations,  depending  entirely  on  the 
relation  of  the  cargo  offered  to  the  available  space. 
Published  rates  can  no  longer  be  depended  upon  as  the 
actual  rates  charged.  To  quote  but  one  instance:  prior 
to  the  outbreak  of  the  war  the  rate  on  nitrate  to  Liver- 
pool varied  from  sixteen  to  twenty  shillings  per  ton.  As 
late  as  July,  1914,  shipments  to  England  were  made 
at  the  former  rate.  The  rate  to  New  York  was  prac- 
tically the  same.  Soon  after  the  outbreak  of  the  war 
rates  advanced  violently  and  in  at  least  one  instance  one 


THE  EUROPEAN  WAR  UPON  CHILE  85 

hundred  shillings  per  ton  were  paid  for  transportation 
of  nitrate  from  Antofagasta  to  Liverpool.  Some  idea 
of  the  advance  ''n  freights  can  be  obtained  through  a 
comparison  of  the  published  rates,  although  it  is  im- 
portant again  to  emphasize  the  fact  that  to  secure  space 
the  shipper  must  often  pay  a  rate  considerably  in  excess 
of  the  published  rate. 

FREIGHT  RATES  PER  TON  WEIGHT 
Valpaeamo  to  New  York  via  the  Panama  Cajtal 

t,            .  JulylW*        December  1914         JnljWW  AonutlBlS 

Copper  bars £2  £2.10.0  $1155  in  35 

HWm '.""'" ^-^-^  ^-^^-^  ^2.00  12.00 

Nitrate '(fliciuiitag  to  such  m" extent  thit^quotations  ^r^impossibk/"" 

Valparaiso  to  Liverpool  via  Maoellak 

Joir  1«14 

Copper  bars £2 

Copper  ores 1.  6.0 

Hides 2.10.0 

Borate    i.io.O 

Nitrate  (constantly  fluctuating) 

The  falling  off  in  tonnage  loaded  and  discharged  in 
Chilean  ports  has  been  as  follows:^ 

MERCHANDISE  LOADED  AT  PORT  OF  VALPARAISO 

]l\l    466,817tons 

mi*     4J3  jif2    " 

January-June,  1914    '   M2  476    •' 

"       1915  .'  ^nc,697    " 

MERCHANDISE  DISCHARGED  AT  VALPARAISO 

lllf   I,183,.q98  tons 

V**    •••; 868,467    •' 

January-June,  1914  489  983    " 

"  1915 ::;:::  3^6,550  - 

MERCHANDISE  LOADED  AT  ALL  CHILEAN  PORTS 

]l\l    4.735,848  tons 

"1*    •••; 3,711,146    " 

January-June,  1914  '^3  406    " 

•'  1915 .■.■::.■  i;7i4;845  •' 

GenVrar«;"?:';a'roIso.*'""  '^''^^  '"  ""  "°"-  "^  '-  ^^"'''  ^^'""•«^«"  Consul 


Daeember  1914 

Jnl7  1915 

Angait  191S 

£2.10.0 

£2.  0.0 

£2.10.0 

1.15.0 

9.10.0 

2.10.0 

4.10.0 

4.10.0 

4.10.0 

1.17.6 

a.  0.0 

2.  0.0 

86 


THE  EARLY  EFFECTS  OF 


MERCHANDISE  DISCHARGED  AT  ALL  CHILEAN  PORTS 

19IS   3^70,073  tons 

191*    3^26,687     ** 

January-June,  1914  1,855,489    •* 

"      191S  940,603    " 

The  problem  of  improving  transportation  facilities 
between  Chile  and  the  United  States  is  one  that  is  now 
receiving  the  serious  consideration  of  the  Chilean  govern- 
ment. There  exists  a  widespread  desire  not  only  to  add 
to  the  available  bottoms,  thus  reducing  the  heavy  burden 
which  existing  freights  have  placed  on  Chilean  indus- 
tries, but  also  to  improve  the  passenger  facilities  by 
means  of  a  direct  line,  without  trans-shipment,  from 
Valparaiso  to  New  York,  making  the  trip  in  fifteen 
days  instead  of  the  present  unsatisfactory  schedule, 
which  means  from  twenty-three  to  twenty-seven  days, 
with  the  additional  discomfort  of  trans-shipment  at 
Colon.^ 

In  normal  periods,  such  as  1913,  the  tonnage  move- 
ment northward  from  Chile  to  the  United  States  is 
approximately  600,000  tons;  the  movement  southward 
is  about  532,000  tons.  This  tonnage  is  divided  as 
follows : 


CHILE  TO  UNITED  STATES 

Nitrates    573,773  tons 

Copper  and  Regulus 20,270    •• 

I^ad    2,112    •• 

Iodine   175    " 

Antimony 170    " 

Wool   25    " 

Miscellaneous    3,475    " 


UNITED  STATES  TO  CHILE 

Oils    350,000  tons 

Coal  112,500    " 

Cloth   5,500    " 

Fish   1,200    " 

General  merchandise  ....    63,300    *« 


533,500    •' 


600,000    " 


The  problem  to  which  the  Chilean  government  has 
addressed  itself  is  to  formulate  a  policy  which  will  enable 
the  Chilean  merchants  to  enjoy  regular  and  rapid  com- 
munication with  the  United  States  either  through  a 
system  of  direct  subsidies  or  through  liberal  payments 
for  the  transportation  of  mails.    This  desire  and  deter- 

•  November,  1917.  The  establishment  of  a  direct  line  from  New  York  to 
Valparaiso  within  recent  months  will  go  far  towards  solving  the  immediate 
problem. 


THE  EUROPEAN  WAR  UPON  CHILE  87 

mination  have  been  the  direct  outcome  of  the  situation 
created  by  the  European  War.  The  powder  mills  of 
the  Umted  States  have  become  great  consumers  of 
Chilean  nitrate  and  it  is  the  hope  of  the  govermnent 
that  with  improved  means  of  communication  other 
Chilean  products,  notably  the  fruits  of  the  country,  wUl 
find  a  market  in  the  United  States. 

mile  there  exist  wide  diflFerences  of  opinion  as  to 
whether  such  a  steamship  line  can  be  made  to  pay, 
the  Chilean  government  is  prepared  to  make  sacrifices 
m  order  to  brmg  about  closer  relations  with  the  United 
Mates.  It  IS  the  hope  of  both  ofiicials  and  merchants 
that  such  a  demonstration  of  national  goodwill  wiU  have 
^Z  f^^'f'^,  °;  Anierican  manufacturers  in  inducing 
them  to  adapt  theu-  business  methods  more  closely  to 
the  credit  system  which  has  prevailed  in  Chile  from  the 
earhest  period  of  her  commercial  development. 

Laboe  Conditions  as  Affected  by  the  War 

The  difficulties  and  hardships  encountered  by  ChUean 
merchants  and  manufacturers  as  a  result  of  the  Euro- 
pean War  siiJc  into  insignificance  when  compared  with 
the  widespread  suffering  and  misery  which  the  paralvza- 
ciasses  *^°*™*'^  ^^  industry  entailed  upon  the  working 

Broadly  speaking,  the  laboring  population  of  Chile 

l"f''i,  ^•i''''^^**  '"*°  ^°"^  categories,  each  living  under 
totaUy  different  conditions,  both  of  physical  environment 
and  general  conditions  of  employment. 

First— The  nitrate  laborers  of  the  northern  provinces. 

becond— The  mining  laborers  of  the  northern  and 
central  provinces. 

Third— The  industrial  laborers  of  the  central  provinces. 
*  ourth— The  agricultural  laborers  of  the  central  and 
southern  provinces. 


m 


^^  THE  EARLY  EFFECTS  OF 

The  Nitrate  Laborers  of  the  Northern  Provinces 

T  Ji!!  ^^?r  ^  *^^  '^*'**^  ^^^^«  °f  the  provinces  of 
tinn^Tfii^ •«"'*•  *"^  Antofagasta  live  inder  condi- 
iZti  °  ^^  different  from  those  of  the  remainder  of  the 
labormg  population  of  Chile.  Labor  in  the  arid  nitrat^ 
fields  reqmres  great  strength  and  endurance  under  the 
most  trymg  of  hvmg  conditions.  The  nitrate  regions 
produce  no  food  products  and  the  price  of  f resh  ^g^ 
tables  IS  so  high  that  the  nitrate  laborer  is  compeuS  to 
live  on  canned  goods.  It  is  true  that  he  receives  a 
wage  far  higher  than  any  other  class  of  Chilean  labor, 
but  It  also  must  be  remembered  that  the  cost  of  aU  the 
necessaries  of  hfe  in  the  nitrate  district  is  exceedingly 

fit  fi  ^^'^^  ^^^^  °^  *^^  *^^^»"^^  laborer  ranges 
trom  five  pesos,  mnety  centavos,  to  seven  pesos,  three 
centavos  per  day,  which  at  the  rate  of  exchange  of 
August.  1915,  is  the  equivalent  of  ninety-five  ceSs  Z 
5pl.l4  American  gold. 

At  the  outLieak  of  the  European  War  53,161  laborers 
were  employed  m  the  nitrate  fields.    We  have  had  oc- 

fnTfJ"*.  T  '  **""  ^?^  ""^'^  *^^°"«»»  ^hich  this 
mdustry  passed  as  a  result  of  the  sudden  closing  of  the 

European   market   and   the   complete   paraWion   of 

^ansportation  facilities.    In  August,  1914.  the  nitrate 

works  began  to  shut  down  and  the  government  fomid 

Itself  confronted  with  the  serious  problem  of  taking  care 

of  a  great  army  of  unemployed.    Inasmuch  as  in  this 

entire  district  nitrate  production  is   the   only   possible 

industry  there  was  no  possibility  of  transferring  these 

people  to  other  occupations  in  the  same  district.    As  we 

have  seen,  the  government  endeavored  to  induce  the 

nitrate    producers    to    keep    their    plants    running    by 

advancing  funds  to  those  who  would  agree  not  to  shut 

down     In  this  effort  they  were  but  partially  successful. 

and  it  was  soon  found  necessary,  in  order  to  prevent 

actual  starvation,  to  transfer  at  government  expense 


THE  EUROPEAN  WAR  UPON  CHILE  89 

more  than  thirty  thousand  laborers  with  their  families. 
Ihe  Chilean  laborers  were  taken  to  the  central  provinces, 
the  Bohvians  and  Peruvians  returned  to  their  respective 
countries.  Some  idea  of  the  extent  of  unemployment  in 
this  distrirt  can  be  secured  from  an  examination  of  the 
statistics  of  labor  employed  in  one  of  the  nitrate  provinces 
—that  of  Tarapaca— during  the  year  1914. 


PROVINCE  OF  TARAPACA 
Labobeu  Emploted  Dinuxo  Each  Month  of  1914 


January  22^98 

February ag^ig 

March    22J77 

AP"'    23,168 

May    23,170 

June   23^09 


July    23,157 

August    17,581 

September 8,347 

October   7,956 

November   7,763 

December   7^06 


This  transfer  to  the  South  did  not  serve  to  relieve 
the  suffering  of  this  large  laboring  population.  While 
agricultural  employment  could  have  been  found  for  a 
large  number,  the  daily  wage  of  the  farm  laborer  in 
Chile  is  so  low  that  these  nitrate  laborers  refused  to 
accept  employment  on  such  terms.* 

The  result  was  that  the  government  was  compelled  to 
maintam  at  public  expense  a  large  army  of  workers  and 
their  families.  Furthermore,  the  willingness  of  a  certain 
number  of  the  nitrate  laborers  to  accept  employment  on 
the  farms  served  still  further  to  depress  the  wage  scale 
ot  the  agricultural  laborer. 

Fortunately,  early  in  1915,  the  demand  for  nitrate 
received  a  strong  stimulus  by  reason  of  the  needs  of  the 
powder  factories  in  Europe  and  the  United  States.  By 
that  time,  shipping  facilities  had  also  improved.  As  a 
result  of  these  influences  the  nitrate  plants  that  had  been 
shut  down  began  to  resume  operations  and  the  laboring 

day\teZrt»lV^T^  receives  from  1  peso  to  1  peso  75  centavos  per 
Drei.n?*r«  »  „f  u  *^'"  '°dg'"g  «nd  a  po.m.l  of  beans  per  day.  At  the 
present  rale  of  exchange  the  peso  is  worth'^lG'/,  cents.  American  gold. 


40 


THE  EARLY  EFFECTS  OF 


population  was  not  slow  to  return  to  this  district  of 
relatively  high  wages.  The  nitrate  producers  are  now 
making  every  e£Fort  to  secure  the  immediate  return  of 
their  laborers  and  every  plant  will  soon  be  working  at 
full  capacity.  Every  steamer  from  the  South  is  bring- 
ing hundreds  of  workers  and  at  the  present  writing 
(September,  1915)  the  production  of  nitrate  has  reached 
about  ninety  per  cent  of  normal. 

While,  therefore,  the  war  precipitated  a  period  of 
great  suffering  for  the  nitrate  laborers,  this  period  has 
now  passed. 


The  Mining  Laborers  of  the  Northern  and  Central 

Provinces 

The  most  recent  official  reports  place  the  total  number 
of  laborers  engaged  in  the  mining  industries  in  normal 
times  at  84,619.  Deducting,  therefrom,  the  53,161  en- 
gaged in  the  nitrate  fields,  there  remains  a  balance  of 
31,458  engaged  in  the  other  mineral  industries.  Of  this 
total  18,471  are  employed  in  the  copper  mines  and 
smelters  and  8,414  in  the  coal  mines.  The  remaining 
4,573  are  employed  in  the  iron,  borax,  sulphur,  gold, 
and  silver  mines.  Wages  in  the  mining  industries  are 
relatively  high,  the  average  ranging  from  eighty  cents 
(American  gold)  per  day  in  the  iron  mines  to  $1.00  in 
the  copper  mines.  This  leaves  out  of  account  the  nitrate 
mines,  with  which  we  have  dealt  separately  and  in  which, 
as  we  have  seen,  the  wage  scale  is  higher  than  in  any 
other  of  the  mining  industries. 

While  the  European  War  brought  about  a  temporary 
paralyzation  of  the  nitrate  industry,  the  other  mineral 
industries  were  less  aflFected.  The  main  difficulties 
experienced  by  the  copper  producers  were,  first,  a  lack 
of  shipping  facilities,  and  second,  a  scarcity  of  subsidiary 
currency  with  which  to  pay  their  laborers.  The  with- 
drawal of  funds  from  banks  by  depositors  created  a 


THE  EUROPEAN  WAR  UPON  CHILE 


41 


scarcity  of  circulating  medium,  which  was  keenly  felt 
by  the  mining  companies  during  the  month  of  August, 
1914.  This  situation  was  soon  remedied  through  the 
facilities  afforded  by  the  "  Caja  de  Emision."  On  the 
other  hand,  the  transportation  problem  was  not  so  easily 
solved  and  for  a  time  proved  a  menace  to  the  mining 
industry. 

In  spite  of  the  unfavorable  conditions  that  prevailed 
immediately  after  the  outbreak  of  the  war,  the  mining 
companies  made  a  determined  effort  to  keep  their  plants 
in  full  operation  and  in  this  effort  were  entirely  success- 
ful. There  was  practically  no  shutting  down  and  as 
early  as  August  11,  1914,  the  manager  of  one  of  the 
largest  copper  mines  informed  the  government  that  if 
he  could  secure  adequate  currency  for  the  payment  of 
his  men,  he  would  be  willing  to  add  to  his  labor  force. 

The  Industrial  Laborers  of  the  Central  Provinces 

Although  the  effect  of  the  European  War  was  most 
keenly  felt  by  the  nitrate  laborers  of  the  northern 
provinces,  the  emp^j/ees  of  the  manufacturing  estab- 
lishments of  the  central  provinces  also  suffered  severely. 
The  total  number  of  factory  employees  at  the  outbreak 
of  the  war  was  80,697,  distributed  as  follows: 

Industry  Employees 

Breweries  and  distilleries 4,325 

Glass  and  pottery 1,053 

Food  products 12,068 

Gas  and  electricity 1,218 

Shipyards   1,034 

Clothing    14,016 

Furniture  and  all  other   vooii  products 12,393 

Building  supplies  1,365 

Textiles   2,568 

Metal  products  6^80 

Paper  and  printing 4,731 

Leather  and  fur  products 13,279 

Drugs  and  chemical  products  2,871 

Tobacco  products  1,735 

Carriages  and  other  vehicles 1,530 

Miscellaneous    731 

Total   80,697 


4t  THE  EARLY  EFFECTS  OF 

This  total  is  made  up  of  53,559  males  and  27,188 
women  and  children. 

In  normal  times,  the  maximmn,  minimimi,  and  average 
wage  in  each  of  these  industries  and  the  hours  of  labor 
are  as  follows: 


Waom  pn  Drm  ' 
Industry  Skilled    Lowest  paid 

unskilled 

Breweries  and  distilleries 10.60  90.34 

Ulass  and  pottery 0.78  0.34 

Food  products 0.86  0.08 

Gas  and  electricity 0.8S  0S2 

Shipyards   0.68  0.3« 

Clothing    1.12  030 

Furniture  and  other  wood  prod- 
ucts         1.18  0.16 

Building  materials  1.13  0.33 

TextUes   0.94  0.30 

Metal  products  1.44  0.36 

Paper  and  printing 0.96  0.33 

Leather  and  fur  products 1.30  0.31 

Drugs  and  chemicals 0.98  0.16 

Tobacco  products  0.62  0.24 

Carriages  and  other  vehicles....    0.66  0.34 


Hovas  oi 

'  Lame 

Maximum 

Minimum 

14 

9 

13 

10 

14 

9 

16 

13 

9 

9 

11 

8 

12 

9% 

16 

8 

19 

9 

11 

8 

14% 

0 

10% 

9 

13 

8 

10 

9 

10 

9% 

The  financial  crisis  precipitated  by  the  European  War, 
the  restriction  of  credits  by  the  banks,  together  with 
the  uncertainty  as  to  the  future,  led  to  the  immediate 
curtailment  of  production  and  an  alarming  increase  of 
unemployment  in  all  manufacturing  centers.  The  re- 
ports received  from  the  Provincial  Intendentes  indicate 
the  following  situation  with  reference  to  industrial  im- 
employment  in  September,  1914: 

Province  Unemployed 

Valparaiso 4,142  (in  the  city  of  Valparaiso). 

Santiago  1,059  (in  the  city  of  Santiago). 

Concepcidn No  statistics  given,  but  many  industries  closed. 

Cautin Sawmills  closed. 

Valdivia  Some  breweries  and  factories  working  half  time. 

Many  closed. 

Coquimbo  Many  unemployed.  Factories  have  discharged  por- 
tion of  personnel. 


'  The  American  equivalent  of  wages  is  calculated  on  the  rate  of  exchange 
prevailing  prior  to  the  outbreak  of  war. 


THE  EUROPEAN  WAR  UPON  CHILE 


48 


In  addition  to  the  widespread  unemployment,  the 
laborers  who  were  retained  in  the  factories  were  com- 
pelled in  many  instances  to  submit  to  a  reduction  of 
wages.  The  latter  part  of  1914  and  the  early  months 
of  1915  witnessed  but  little  improvement  in  the  condition 
of  factory  labor.  Employers  are  unwilling  to  resume 
operations  on  full  time  until  they  can  see  their  way  clear 
with  reference  to  the  bank  credits,  currency  stability, 
and  market  conditions.  Not  until  August,  1915,  was  a 
marked  improvement  in  the  manufacturing  industries 
noticeable.  The  recovery  of  the  nitrate  industry  has 
reacted  on  manufacturing  activities,  stimulating  the  re- 
sumption of  work.  Although  there  still  exists  consider- 
able unemployment,  there  is  every  indication  that  by 
the  close  of  the  year  1915  manufacturing  will  again 
have  reached  a  normal  level. 


The,  Agricultural  Laborers  of  the  Central  and  Southern 

Provinces 

The  agricultural  laborers  su£Fered  less  in  consequence 
of  the  European  War  than  any  other  section  of  the 
laboring  population.  This  is  due  to  two  circumstances. 
First,  to  the  fact  that  the  agricultural  interests  of  Chile 
suffered  but  little  as  a  result  of  the  war,  inasmuch  as 
the  prices  of  food  products  showed  a  marked  tendency 
upwards.  The  difficulties  which  the  large  landowners 
encountered  were  due  almost  entirely  to  the  restriction 
of  credits,  which  in  some  sections  led  to  the  discharge 
of  farm  laborers.  The  second  circumstance  which  ex- 
plains the  relative  immunity  of  the  agricultural  laborer 
from  the  disastrous  effects  of  the  war  is  the  exceedingly 
low  wage  and  low  standard  of  life  of  this  section  of  the 
population.  Chile  is  a  country  of  large  landed  estates. 
Agricultural  labor  receives  a  wage  which  ranges  from 
twenty  to  forty  cents*  per  day,  together  with  a  ration 

'  At  the  rate  of  exchange  immediately  preceding  the  war. 


!SB 


I'    i 

% 


\\'  ■; 


4*  THE  EARLY  EFFECTS  OF 

which  usually  takes  the  form  of  from  one  to  two  and  one- 
fifth  pounds  of  beans.  In  addition,  the  proprietor  fur- 
nishes habitation  which  is  usually  of  the  most  primitive 
type.  Laborers  are  usuaUy  given  the  use  of  a  small  tract, 
about  half  an  acre,  on  which  they  may  raise  produce 
for  their  personal  consumption.  This  latter  privilege  is 
only  enjoyed  by  the  so-caUed  "  Inquilinos,"  who  differ 
from  the  ordinary  farm  laborer  by  reason  of  more  per- 
manent tenure.  In  most  provinces  they  also  receive  a 
somewhat  higher  wage  than  the  more  transient  day 
laborer  but  in  return  are  required  to  perform  certain 
extra  services.  In  some  cases  they  are  obliged  to  fiumish 
to  the  landowner  one  additional  laborer.  It  should, 
furthermore,  be  added  that  the  exceedingly  low  wage 
of  the  "  Inquilino  "  is  sometimes  supplemented  by  minor 
earnings  of  wife  and  children  in  the  dairies  attached  to 
the  estates. 

The  great  influx  of  nitrate  laborers  from  the  North 
led  to  a  superabundance  of  farm  labor.  Diuing  the 
latter  part  of  1914  there  was  a  tendency  to  reduce  wages, 
as  will  be  seen  from  the  following  reports  from  the 
agricultural  provinces. 

PER  DIEM  WAGE*  PER  DIEM  WAGE' 

Without  Ratioit  With  Ratiok 

Province                          Inquilino  Laborer  Inquilino  Laborer 

Aconcairaa |030  $0^  $0^5  «0.2I 

Valparaiso 0.40  034  0.30  0.2a 

O'HlMins    0.40  OM  0J8  0.96 

Colchajnia    0.40  0.40  0.30  0.22 

Curicd. 0.30  0.29  0.22  0.20 

Talca    0.40  0.37  0.18  0.22 

Nuble    0.20  0.19  0.16  0.29 

Concepcidn 0.24  0J4  0.23  0J» 

Government  Measures  to  Meet  the  Problem  of 
Unemployment 

The  labor  problem  confronting  the  Chilean  government 
at  the  outbreak  of  the  Eu'  ^pean  War  was  an  exceedingly 
serious  one,  owing  to  th*-  necessity  of  transporting  so 

'  Estimated  in  Americen  gold. 


THE  EUROPEAN  WAR  UPON  CHILE  40 

large  a  proportion  of  the  nitrate  labor  of  the  North  to 
the  central  provinces.  Although  receiving  a  relatively 
high  wage,  the  habit  of  saving  has  never  been  developed 
m  the  poorer  cksses.  The  government  saw  itself  con- 
fronted with  the  necessity  not  only  of  giving  free  trans- 
portation to  a  great  mass  of  kborers  and  their  families, 
but  also  of  supporting  them  unless  some  plan  could  be 
devised  to  secure  employment  for  them.  To  meet  this 
emergency,  a  National  Labor  Bureau  was  organized 
which  has  done  excellent  service  in  securing  employment 
for  at  least  a  portion  of  the  great  army  of  unemployed. 
Between  August  18,  the  date  of  the  establishment  of  the 
Bureau,  and  November  17,  1914,  this  agency  had  secured 
employment  for  7,686  persons  distributed  as  follows: 

Number  for 

Ch.,«ter  of  Work  "S  SS' 

Public  works    i  .on 

Public  roads *.'.".■.*.■.■.;;■.!;  S^ 

Factories  and  workshops ma 

Agriculture '.'.'.'.'.'.'.'.'.  ij^ 

The  magnitude  of  the  unemployment  problem  is  made 
evident  by  the  fact  that  during  the  first  four  months  after 
the  outbreak  of  the  war  the  government  brought  29,919 
persons  from  the  nitrate  district  to  the  ports  of  Coquimbo 
and  Valparaiso.  The  situation  was  further  complicated 
by  the  fact  that  the  nitrate  laborer  of  the  North  is  the 
least  adaptable  and  the  most  restless  element  of  the  labor- 
ing population.  It  soon  developed  that  employment 
could  only  be  found  for  a  relatively  small  percentage  of 
the  total  and  that  in  many  cases  offers  of  employment 
were  met  with  a  refusal  to  work  for  a  wage  less  than 
that  to  which  they  had  been  accustomed  in  the  nitrate 
fields.  The  result  was  ihat  the  government  found  itself 
compelled  to  support  the  greater  part  of  the  unemployed 
for  a  period  of  several  months.    Throughout  the  country 


46 


EFFECTS  OF  WAR  UPON  CHILE 


the  situation  was  regarded  as  \^i  'olving  a  serious  menace 
to  the  social  order  of  the  Republic. 

The  return  of  the  nitrate  lihfrers  to  the  North  has 
also  served  to  improve  soniew  it  the  condition  of  agri- 
cultural labor.  For  the  harve.^tin^  of  the  present  crop 
there  wiU  probably  be  a  scarcity  ri'  labor  which  will,  no 
doubt,  bring  about  some  Uttlc  t\[.i  'ement  in  the  wages 
of  the  transient  farm  laborer. 

While  there  has  been  this  ;'i;.iinci,  enprovement  in  the 
condition  of  mining  and  far  >  a.bin  the  status  of  the 
factory  workers  has  not  ad  in<  i'  n  the  same  ratio. 
The  manufacturing  estabL'sl  ^..)'>  that  ck-sed  are 
slowly  resimiing  operations  r 
a  portion  of  their  labor  fore 
Restriction  of  credits  by  the 


bunk. ,   . 


r'^  discharged 
aiding  thereto. 
»etlier  with  the 
uncertainties  incident  to  flu  ;tuat.  u.  exchange,  has 
created  an  atmosphere  of  distrust  wliich  is  proving  a 
serious  obstacle  to  the  recovery  of  manufactiuring 
enterprise. 


-s 
i 


CONCLUSION 

The  inridespread  suffering  caused  throughout  Chile  by 
reason  of  the  European  conflict  is  but  another  indication 
of  how  deeply  the  vital  interests  of  the  republics  of 
America  have  been  affected.  Not  only  were  government 
finances  seriously  impaired  but  almost  every  branch  of 
industrial  life  suffered  a  severe  shock. 

From  a  strictly  governmental  point  of  view  the  crisis 
has  not  been  an  luunixed  evil,  inasmuch  as  it  has  brought 
into  the  foreground  of  public  attention  the  necessity  of 
undertaking  some  systematic  revision  of  the  national 
fiscal  system.  Basic  industrial  and  economic  conditions 
in  Chile  are  today  essentially  healthy,  and  will  enable  the 
country  rapsdly  to  emerge  from  the  crisis  precipitated  by 
the  war. 

Another  effect  of  the  war,  which  may  prove  of  indirect 
benefit  to  the  country,  is  the  fact  that  the  crisis  pre- 
cipitated by  the  European  conflict  has  served  to  impress 
upon  the  business  men  of  the  country  the  dangers  in- 
volved in  the  dependence  on  foreign  capital.    The  bitter 
lessons  of  the  recent  financial  crisis  have  shown  that  what 
Chile  needs  most  is  a  larger  measure  of  financial  inde- 
pendence, and  that  this  can  be  secured  or)ly  through  the 
development  of  the  habit  of  saving  amongst  her  people. 
The  wealth  and  resources  of  the  country  and  the  energ\- 
of  the  inhabitants  would  lead  one  to  expect  a  larger  surr 
total  of  native  capital.    With  such  great  resources,  with 
no  racial  problems  of  a  serious  or  vital  character.  Chil* 's 
future   depends   entirely   on   the   extent    to    which   her 
population  is  willing  to  make  present  sacrifices  for  larger 
ultimate  returns. 


fl 


APPENDICES 


li 


APPENDIX  A 


IMPORTS  OF  UNITED  STATES  FROM  CHILE « 
Year  Ending  June  SO 


Quantities 


1913 


1914 


Antimony    ore,    regulua    or 

metal,  lbs.    (dut.) 341,697       

Articles,  the  growth,  produce, 

or  manufacture  of  the 

United  State*,  returned 

(free)     

Art  woriu  (free)   

Bladders,   integuments,   etc. 

(free)    

Chemicals,  driigs,  dyes  and 

medicines: 
Extracts  for  tanning,  lbs. 

^  J/we)    •    ■ 167,795 

Iodine,    crude    or    resub- 

limed,  lbs.   (free)    ....        351,236         195,030 
Soda,     nitrate     of,     tons 

J,*^)    873,773         661,209 

AH  other  (free) 

Coal,  bituminous,  tons  (free)  20 (dut.)  1,007 

Ckmper,  and  manufactures  of : 
Ore      (copper     contents), 

lbs.   (free)  14,096,944    15,213,097 

Matte  and  regulus  (copper 

contents)    lbs.    (free)..  13,436,913     13,289,655 
Figs,     ingots,     etc.,     lbs. 

B  J,^>   /. 14,004,408    14,426.881 

Fertilizers  (free)   

Fruits  and  nuts: 

Walnuts,    unshelled,    lbs. 

_,.     <•»"»•>    • 443,713      3.120,824 

Furs    and    fur    sluns,    un- 
dressed (free)    

Hides  and  skins,  etc. : 
Goat,  dry,  lbs.  (free) ....  31,674  iS,028 

Household  and  personal  ef- 

fects,  etc.    (free)    

India  rubber  scrap,  fit  only 
for  remanufacture,  lbs. 

,   (free)  33,746   

Iron  ore,  tons  (free) 8,a00 


1913 
920,406 


19,317 
92 

6,099 


739,734 


Values 

1914 


20,474 
169,260 

6,672 


8,509 
423,293 


19,942,419  17,808,763 

10,320    101,688 

182 (dut.)  6,035 


2,242,784 
2,166,418 
2,248,311 

33,832 

32,266 

6,081 

6,637 

2,450 


1,974,429 

2,004,898 

2,145,748 
395,948 

253,622 
7,144 
2,538 
8,721 


7.829 


/tt'  'U^'o®  "'  *''®  United  States  with  other  American  Countries,  1913-1014  " 
(United  SUtes  Bureau  of  Foreign  and  Domestic  Commerce.) 


61 


18,862 

39,173 
32,926 


n  APPENDIX  A 

QUAnTITIBS 

1913  1914 

Lead  and  mannfaetares  of: 
Lead  ore   (lead  contents) 

Ibe.  (dut.)    4,223,430      6,316,937 

Bullion  and  base  bulUo7« 

Ibe.    (dut.)     2,673,030 

Meat  products;  sausage  cas- 
ings, lbs.  (free)    

Tin    in   bars,    blocks,   pigs, 

etc.,  lbs.    (free)    

Wax:  beeswax,  lbs.  (free) . . 

Wool  of  the  sheep,  hair  of 

the    camel    and    other 

like  animals: 

Class    1:     Clothing,    lbs. 

(free)    

Class  3 :  Carpet,  lbs.  ( free ) 
Wool,    hair    of    the    camel, 
goat,  alpaca,  and  other 
Uke  animals: 
Class    1:     Clothing,    lbs. 

(dut.)    

Class     3:      Carpet,     lbs. 

(dut.)    

Zinc  ore  (zinc  contents)  lbs. 

(dut.)     2,304,742 

All  other  free  and  dutiable 
goods  


33,085 
16,693 


Total  free  of  duty.. 
Total  dutiable 


108,983 


127,299 
73,225 


23,380 
40,948 


VAum 
1913  1914 

9  88,602     9  182,622 

91,994 

14,639       


12,418 
9,874 


4,982 

1,673 

46,095 

2,610 


36.975 


33,969 
9,383 


3,735 
4,027 

15,062 


927,468,211  926,184,040 
197,209         537,188 


Total  imports  of  merchandise 927,655,420  925,722,128 


EXPORTS  OF  UNITED  STATES  TO  CHILE » 

DoHKsno  ExFOBTS  Quantities  Valxteb 

1013             1914                 1913  1014 

Abrasives:                                                                                  «- o<.<,  «aiao 

Wheels,  emery  and  other     94,868  92,188 

All  other    14.357  8,807 

Agricultural  implements  and 

parts  of :                                                                                   „  „„„  „  _„  . 

Hay   rakes   and   tedders     2,063  3,720 

Mowers  and  reapers 87,679  86,166 

Planters  and  seeders ,,o'„;?  oAlaa 

Plows  and  cultivators US'Sit  ,„t'ooX 

Threshers    J08.236  107,330 

All  other,  and  parts  of "2.207  94,882 

Aluminum,     and     manufac- 

tures  of 1-218  1.938 

'  •'  Trade  of  the  United  States  with  other  American  Countries,  1913-1914." 
(United  States  Bureau  of  Foreign  and  Domestic  Commerce.) 


APPENDIX  A 


88 


Animali: 

Cattle,  No 

All  other,  inclnding  fowla 
Aabestoa  (manufactures  of) 
Aaphaltum : 

ITmiuinufactured    (tons). 

Manufactures  of 

Babbitt  metal  <lb«.)   

Blacking     (including     shoe 
paste    and    polish    and 

other)     

Brass,  and  manufactures  of. 
Breadstoffs: 

Barley  (bush.)    

Oatmeal    (lbs.)    

Preparations  of,  for  table 

food    

Wheat  flour   (bbls.)    . 

All  other 

Broom    com,    and    manufac' 

tures  of    

Brushes 

Cars,  carriages,  other  vehi- 
cles, and  parts  of: 
Automobiles — 

Commercial   (No.)    

Passenger    (No.)    

Parts,   not    including   en- 
gines and  tires 

Carriage  (No.)    

Cars,  passenger  and  freight: 
For  steam  railways — 

Passenger    

All  other    

For  other  railways   

Bicycles,  tricycles,  etc.   .. 

Motorcycles  (No.)    

Wagons   (No.)    

Wheelbarrows,     ptuhcarts 

and  handtnicks  

All  other,  and  parts  of . . . 
Cement,  hydraulic  (bbls.).. 
Chemicals,  drugs,  dyes  and 
medicines : 
Acids — 

Sulphuric    (lbs.)     

All  other    

Baking  powder   ( lbs. )    ... 
Calcium  carbide  ( lbs. )    . .     ] 
Medicines,  patent  or  pro- 
prietary     

All  other    

Clocks     and     watcbea     and 
parts  of: 

Clocks,  and  parts  of 

Watches,  and  parts  of  . . 
Coal,  bituminous  (tons)  .. 
Confectionery 


QCAI«TITnS 

1»13  1914 

20 


184,062 
474,434 


78 
368 


39 

81 


17 


129      1,158 
139,213     66,633 


1,469 
477,321 


28,781    152,324 


2 
196 


109 


37 
131 


38,449     26,203 


327,673   4,160,910 


22,037     29,762 
,684,000   2,797,440 


112,067     83,876 


Valvks 
1013     1914 


$    2,260  $ 
2,673 
2,919 

4,129 

73 

32,599 


27,413 
30,737 

134,633 
23,424 

4,742 

114,414 

13,925 

18,802 
843 


109,082 

4,711 
40,288 


192,639 

271,002 

57,443 

2,566 

8,134 

7,577 

10,827 
16,479 
51,823 


3,889 

2,172 

7,929 

49,231 

235,640 
70,444 


17.000 

19,979 

324,153 

2,879 


3,725 

641 

4,974 

35,876 
14,472 
11,231 


18,506 
31,603 

790 
24,845 

4,645 

574,466 

1.404 

9,705 
2.178 


10,743 
160,194 

22,405 
12,118 


138,547 
7,375 

134,991 

2,506 

7,967 

13,161 

7,490 
21,370 
35,807 


48,277 

3,415 

10,663 

72,289 

200,918 
71,874 


9,623 

18,533 

232,490 

3,404 


M 


APPENDIX  A 


I 

%     ! 


Cop|Mr.  mannfaeture*  of: 
Pin.     ingots,     and    ban 

(Iba.)     

PUte*  and  sheet*   (Ibi.) 
Rods  and  wire  (lbs.)    ... 
All  other  manufactures  of 
Cotton  manufactures  of: 
Cloth*— 

Unbleached  (yds.)    

Bleached   (yds.)    

Colored    (yds.)    

Laces  and  embroidery  . . . 

Waste,  cotton  (lbs.)    

Wearing  apparel — 

Corsets 

Knit  goods    

All  other   

All  other 

Dental   goods    

Earthen,  stone  and  China 
ware: 

Bricks,  fire   (M)    

Tiles,  except  drain   

All  other    

Eggs    (do«.)    

Electrical  machinery,  appli- 
ances, and  instruments: 
Dynamos,  or  generators.. 
Insulated  wire  and  cables 
Interior  wiring  supplies, 
etc.  (including  fixtures) 
Lamps — 

Arc    (No.) 

Incandescent — 
Carbon  filament  {'So.) 
Metal  filament   (No.) 

Motors  

Static  transformers  

Telephones    

All  other   

Explosives : 

Cartridges 

Dynamite   (lbs.)    

Gunpowder   (lbs.)    

All  other    

Feathers    

Fibers,  vegetables,  and  tex- 
tile grasses,  manufac- 
tures of: 

Cordage  ( lbs. )    

Twine — 

Binder    (lbs.)    

All   other    

All  other  manufactures  of 
Fish: 
Salmon,  canned    (lbs.) . . . 

Shellfish    

Fly  paper  


81 

73,206 
89,349 


QuARTrrm 

Valowb 

1913 

1914 

1913 

1914 

1,300 

4,837 

10,295 

117,636 

408.125 

79,772 

9   239 

932 

1,727 

4.626 

$  21,010 

76,268 

13,702 

147.832 

8,346,412 

1.870,722 

280,214 

27,782 

9,590,339 
448,252 
215.378 

52.644 

637.105 

129,032 

23,269 

2,123 

660,091 

44,069 

18,585 

3,750 

3,741 

3,037 
17,583 
31,215 
66,310 
20.338 

9,895 
22,576 
37,431 
89,406 
21.839 

158 
270 

245 

9.876 

16,434 
1,225 
8.610 

n 

23,822 
6,242 

15,016 
2.414 

15,777 

19,687 
45,952 

90 

53,275 
31,906 


961,850         912,485 
5.452  15.625 


206,169         202,177 
320,111       1,013,110 


2,318,720      2,123,237 


1.968 

8,377 

17,701 

104,270 

4,600 
201.642 

60,050 

100,384 

1.741 

25,893 

8,283 


22,444 

22,121 
6,055 
2,279 

143,574 

11,028 

5.562 


26.176 

1,880 

6.780 

8,344 

92,747 

37,839 

3,374 

166,141 

45,220 

107,087 

5,270 

15,134 

7,489 


22.436 

87,213 
8,077 
7,888 

134,678 

13,745 

4.003 


APPENDIX  A 

QUARTITm 

Fruit.:  ""  "" 

Oreen,  ripe  or  dried 

Prepared  or  preienred    . .     . 

Furniture  of  metal 

OIam  and  glawware 

niVi"*'  y^-.l   '  "'■«.753       ■  Meioi 

Gold   and   gilrer,   manufac-  "".ovi 

turee  of,  including  jewelry     

Greaae  


M 


930 
9.957 


1,465 


Household  and  personal  ef- 
fects   

India   rubber,   manufactures 
of: 

Belting,  hose  and  packing    

Boots  and  shoes — 

BooU  (pairs)    2,001 

ShMs   (pain)    20,434 

For  automobiles   

AH  other   .'.'.'.".'.'.' 

All  other  manufactures  of 
Ink ■;■■■ 

Iiutruments  and  apparatus 
for  scientific  purposes: 
Medical   and  surgical   in- 
struments    

All  other    '.'.'.'.'.'.'.'. 

Iron  and  steel,  and  manu- 
factures of: 

Pig  iron  (tons)    gag 

Bars    or    rods    of    steel 

BoiSr'nuts;-  rivets-  and  ''•'"'"'    "'"''"« 

BuTSSrhaffire-l '''''''      ^■«"'«" 

Locks  

Hinges  and  others  

Car  wheels   (No.)    '950 

Castings,  n.e.8 

Cutlery: 

Razors  

Table    

All  other   ..■■;■ 

£namelware: 

Bath  tubs  (No.)    

Lavatories  and  sinks  . . 

All  other   

Firearms   

Machinery,  machines  and 

parts  of: 

Adding  machines  (No.) 

Air-compressing  ma- 
chinery     

Cash  registers  (No.)   .. 

Engines  and  parts  of: 
Electric      locomotives 
(No.)     


590 


291 


8 


130 


278 


38 


188 


Values 
1913  1914 


2 


2,585 

6,121 

14,710 

30,823 

18,658 

12,686 
75,056 

16,871 


57,970 

8,720 
12,677 

2,844 
31,078 
24,812 
12,201 


6,059 
12,564 


13,637 

206,922 

29,421 

30,424 

51,611 

8,030 

3,627 

3,126 

3,894 

16,609 

5,368 
11,612 

3,324 
38,861 

2,271 

17,646 
21,211 

16,918 


5,466 

5,136 

16,345 

40,224 

14,808 

2,831 
80,208 

13,216 


71,113 

4,643 
5,676 

10,636 
19,805 
27,383 
12,408 


5,750 
19,341 


18,289 

237,43J 

35,986 

30,829 

69,033 

4,501 

8,648 

6,364 

6,232 

15,154 

5,372 

5.705 

2,463 

45,789 

6,898 

11,484 
25,373 

4,112 


APPENDIX  A 


QUAHTlTin 

1»13  1014 


Iron  and  itcel,  sad  mura- 
factoTM  of:  {Oomt.) 
Istemal  combaatioa — 
Ou,      atatioBarj 

(No.)    

Ofttoline — 

M«rine   (No.)    . . 

Stationary    (No.) 

Traction   (No.).. 

Steam — 

LocomotivM  (No.) . 

SUtionary    (No.).. 

Traction  (No.)    ... 

All     otlicr    engines 

(No.)    

ParU  of  

Laundry  machinery  ... 

Lawn  mowers   

Metal  worldng  machinery 
Milling  machinery  (flour 

and  grist)    

Mining  machinery   

Printing  presses  

Pumps     and     pumping- 

machinery    

Refrigerating  machinery 
including    ice-malcing 

machinery  

Sewing  machines    

Shoe  machinery    

Sugar  mill  machinery.. 

I^ypesetting      machines, 

linotype  and  others.. 

Typewriting      nutchines 

Windmills  

Woodworlcing    ma- 
chinery: 
Sawmill   machinery. . 

All  other    

All     other     machinery, 

and  parts  of  

Nails  and  spikes: 

Cut    (lbs.)    

Railroad    spilces    (lbs.) 

Wire   (lbs.)    

All   other    (including 

Uclcs)    (lbs.)    

Pipes   and   flttingii    (lbs.) 
Rails     for     railways,     of 

steel    ( tons )    

Railway    tracic    material, 
etc.    (except    rails    and 

spikes )     

Scales  and  balances    

Sheets  and  plates: 
Iron — 
Galvanized    (lbs.) 
All  other   (lbs.)    .... 


28 
17 


18 
20 


68 


10 

58 
28 

4 

23 
28 
17 

28 


6,105,182  6,775,023 
175,677  202,064 
352,860         520,799 


328,026 
3,540,988 

13,930 


333,882 
7,026,138 

7,302 


VAum 
1913  1914 


«    4,432     $      1,798 


2,599 
1,863 


202,763 
13,679 


12,480 

27,478 

4,401 

8,296 

43,930 

68,246 

182,017 

7,438 

73,627 


21,299 

94,774 

68,247 

7,346 

9,421 

117,023 

22,226 


37,099 
39,799 


91,089 
3,400 
7,749 

164il3 
111,932 


11,160,605 
350,344 


88,101 
221,005 


66,747 
42,687 


337,075 
8,427 


6,942 

4,398 

10,540 

190,944 
23,904 
32,679 

7,920 
74,667 

7,427 

436 

86,168 

42,676 

274,421 

6,074 

61.713 


18,666 

42,886 

43,350 

370 

29,379 
95,026 
27,686 


24,147 
28,049 


260,647    327,058 


105,249 

3,305 

10,627 

16,791 
226,780 


468,827    253,166 


83,930 
43,195 


2,663 
6,537 


APPENDIX  A 


57 


Iron  and  stMl,  and  manu- 
factuTM  of:    iC«mt.) 
Steel- 
Plates  (Ibt.)    

Sheeta  (Iba.)    

Stove*,  ranges,  and  parta 

of    

Structural  steel  and  iron 

(tons)    

Tin     plates,     temeplates, 
and   taggers  tin    (lbs.) 
Tools,  n.e.s.: 

Axes    (No.)    

Hammers  and  hatchets 

Saws    

Shovels  and  spades  ... 

All   other    

Wire  and  manufactures  of 
wire: 

Barbed   (lbs.)    

All  other  (lbs.)    

Manufactures  of  

All  other  manufactures  of 

iron  and  steel    

Lamps,  chandelieii.  etc.  (ex- 
cept electric)   

Lead,  manufactures  of  

Leather   and   tanned   skins, 
and  manufactures  of: 
Leather  and  tanned  skins — 

Belting    

Patent    


QU  All  TITUS 

1913  1914 


4,008,851       7,557,603 
25,005,801    22,M»,765 


Vaxjtcs 
1913  1»14 


5,85»  8,750 

4,700,351      4,252,521 

10,311  14,948 


% 


Calf    (sq.   ft.)    

Glazed   kid    (sq.   ft.) 

All  other   

All     other     leather     and 

tanned  skins   

Manufactures  of  boots  and 
shoes: 

Children's  (pairs)    

Men's    boots    and    shoes 

(pairs)     

Women's   (pairs)    

All  other 

Leather,  imitation   

Meat  and  dairy  producti>: 
Meat  productg — 
Beef  products — 
Beei,      pickled      and 
other    cured     ( lbs. ) 
Oleomargarine,  imita- 
tion   butter     (lbs.) 

Tallow    (IbB.)    

All  other   (lbs.)    

Hog  products — 
Hams    and    shoulders 
(lbs.)     


616 

48,204 
12,394 


68,748 


2,781,555      3,517,910 
20,209,057      7,790,153 


176,376         218,532 
2,524,490      1,317,127 


2,010 

38,817 
18,311 


24,000 


f  67,520 
750,000 

23,093 

232,181 

180,188 

10,454 

15,268 

44,836 

3,231 

120,955 


70,003 

408,531 

53,153 


26,295 
10,006 


27,607 
35,509 

47,173 

482,929 

16,082 

2.194 


685 

140,626 

33,722 

43,412 

1,675 


7,461 


«  130,276 
630,098 

23,072 

460,213 

157,442 

10,011 

15,636 

33,435 

7,758 

117.129 


83,783 

156,445 

50,067 


257,752         244,364 


15,513 
128,628 


13,672 
56,305 

62,312 

238,924 

5,820 

10,641 


2,153 

118,587 

C  1,621 

26,595 

2,076 


2,578 


79.293 

131,311 

8,655 

14,481 

133,505 

404,029 

9,104 

26,546 

78,667 

8,559 

9,561 

1,236 

16,882 


25.061 


2,655 


4,226 


APPENDIX  A 


;i  ( ■ 


QoAimmi 

MMt  Mid  dairr  producU: 
(Com.) 

If^  (Om)    1.934.928      1,M«,147 

Pttrk,    piekltd    <I1m.)         34,600  28,500 

Lard,  eompoiuid,  and  other 
rabatitutea      for      lard 

.('•>••)     1.701,802      1,411,417 

All  other   

Dairy  product* — 
Butter  and  checM  (lbs.)  1,530  8,245 

Milk^ 
CondenMd    (Ibe.)    ...         25,531         118,501 

Other,  including  cream     

Motor  boate n  g 

Mnaical     instruments,    and 
parte  of: 
Pianos- 
Player  pianos  (Na) ...  75  11 

All  other  (No.)    160  161 

Perforated  music  rolls 

All  other,  and  parte  of 

Naral  stores: 

Resin    (bbls.)    11,413  4,730 

Turpentine, spte.<rf  (gals.)        131,005  84,460 

Oilcloth 

Oils: 

Animal    (gals.)     1,578  3,225 

Mineral — 
Crude,  including  all  nat- 
ural oils,  without  re- 
gard to  gravity  (gals.)  500      6,636,000 
Keflned  or  manufactured — 
Illumination       oil 

(g»la)     7,961,224      0,125,953 

Lubricating  and  heavy 

paraiBn  oil  (gals.)  1,774,587  1,960,331 
Gasoline  (gals.)  ....  34,615  747,930 
All    other,     naphtha, 

etc.    (gals.)     324,696  53,189 

Residuum,  etc. — 
Gas  oil  and  fuel  oil 

(g*l«)     68,244,417     77,566,178 

All  other   (gals.)    ...  19,867,607    64,543,524 
Vegeteble,  fixed  or  expressed — 

Cottonseed   (lbs.)    3,639,389      4,921,207 

Linseed     or     flaxseed 

(gals)    3,423  5,058 

All  other 

Paints,  pigments,  colors  and 
varnishes: 
Ready-mixed  painte  (gals.)         17,464  16,061 

Varnish    (gals.)    8,846  7,364 

All  other,  including  crayons     

Paper,  and  manufactures  of: 

Bags    

Books,   miuic,   maps,    en- 
gravings,   etchings,   etc 

Carbon  paper  


Valou 
1913  1914 


1229,413     f  222,012 
3,901  3,151 


149,563 
3,010 

510 

2,118 

3,712 

16,18« 


24,647 

41,490 

9,363 

3,360 

80,907 

65,342 

2,926 

1,275 


392,945 
9,348 

77,725 


1,869 
18,325 


29,412 

0,768 

24,100 

1,980 

260,870 
1,663 


130,432 
4,622 

1,469 

9,288 
1,393 
8,035 


3,705 

41,685 

2,882 

1,344 

24,298 
43,669 
10,972 

2,872 


27         118,500 


900,771      1,028,155 


418,279 
166,724 

12,412 


923,801   1,365,661 
303,912    978,662 

296,752    436,672 


2,598 
11,982 


26,829 
10,712 
23,662 

2,884 

109,600 
8,108 


APPENDIX  A 


09 


Pi^er,  ud  iMDnfMtarM  of : 

(Cent.) 

Paper  Iwni^ngi 

Plio'iag  card*   

Printing  paper — 

New*  print  (Ibt.)    

All  other  (lt«.)    

Wrapping  paper  (Ibe.)   .. 
Writing    p^per    and    ea- 

Telope*  

All  other    

Paraffin,  and   paralBa   wax 

(Ibt)     

Pencils   (except  tUte)   and 

pencil  lead*   

PenhoMers  and  pens  

Perfumeries,  cosmetics,  and 

all  toilet  preparations. . 

Phonographs,  graphophones, 

gramophones    and    rec- 

ords,  and  materials  for 

Photographic  goods: 

Cameras    

Motion  picture  Alms  (lin. 

*t. )    

Other  sensitized  soods  . . . 

All  other   

Plated  ware,  except  cutlery 

and  jewelry  

Plumbago,  or  graphite,  and 

manufactures  of  

Hoofing    felt,    and    similar 

materials 

Silk,  manufactures  of 

Soap- 
Toilet,  or  fancy  

AH  other  (lbs.)    

Spirits,  wines,  nwlt  liquors, 
and  other  beverages  . . . 
Stone  (including  marble) . . 
Surgical  appliances  (not  in- 
cluding instruments)   . . 

Tin,  maniuactures  of  

Tobacco,  and  manufactures 

of    

Toys  '"     \ 

Trunks,  valises,  and  travel- 

ing  bags   

Type   (lbs.)    

Typewriter  ribbons   

Vegetables: 
Potatoes,  except  sweet  po- 
tatoes     

Vegetables,  canned   . 

All  other    

Wood  and  manufactures  of: 

Logs  and  other  round  tim. 

ber   (M.  ft.)    


QUARTimi 

1913  1014 


Vauou 
1»U  1»U 


3,0»1,416      1,493,073 

1,047,745         913,419 

20,881  27,545 


1,477,818      2,282,1«1 


8.400         116,977 


202,662         244,971 


0.088  7,676 

7.709  8,960 


9    4,440 
7,070 

75,692 

48,207 

802 

12,228 
19,778 

64,023 

4,825 
3,168 

21,643 


41,395 

6,372 

175 

14,143 

5,000 

26,408 

1,341 

5,430 
1.159 

113.862 
12,603 

4,524 
6,700 

16,411 

7,824 

5,647 
7,474 

1,748 
3,658 
6,063 


5,474 
1,360 
3,685 


10  600 


100 


f      2,374 
6,032 

37,141 

40,665 

1,071 

6,968 
18,851 

92,098 

3,641 
6,501 

25,437 


44,213 

6,158 

5,468 

17,078 

5,134 

27,303 

2,297 

2,462 
5,276 

91,330 
16,290 

6,793 
6.304 

28,351 
5,992 

7,045 
4,094 

2,610 
2.039 
4.777 


7.132 

12,310 

4,762 


5,000 


APPENDIX  A 


Wood  mad 


{Oon$.) 


nfactana  of: 


Fir  (k  ft.)    

Oak   (M.  ft.)    

White  pine    (M.  ft.) 

Yellow  pine,  pitch  and 

other   (M.  ft.)    ... 

All  other   (M.  ft.).. 

StaTca  (No.)   

Doon,  Mkth  and  bliada  . . 

Furniture   

Ineubttort  nad  Inraodera. . 

TriBuainn,  moldinn  and 

other  honae  flniahingt. . 

Woodenwara  

All  other  maaufaeturea  of 


Wool,  Buuiufaoturea  of: 

Wearing  apparel    

All  other  '.„ 

Zinc,  and  naanufacturea  cS. . 

All  other  articlaa 


QnAmiiiu 
»1S  1914 


Vaum 
»»  1914 


349 

98 

818 

380 

99,873 


08,829 

870 
899 

383 

188 

151.091 


$778,888 

87,099 

4,800 

18,093 
83481 
18,004 

4,848 
101,004 

3,381 

9,809 
3,379 

83,508 


f  787,970 

81,889 

0,898 

80,844 

10,088 

88,878 

8,001 

110,889 

3,984 

4,888 
3,181 

90,047 


309  3,380 

10,338  8,010 

1,874  4,840 

48,849  08,718 


Total  Doiosno  Expobts 
Total  Fouion  Expom  . 

Total  Ezfwtb  or  Mi»> 
CBAiroisc 


.916,084,069  817,406,784 
11,794  83,688 

.116,076,783  $17,438,308 


■!.■: 


APPENDIX  B 

TRADE  WITH  UNITED  STATES,  lOlS-1914  • 

£XFOBra  iMTtHTB 

UoUb                    MU              uu  Itu              ,,.. 

§S'".:;  ::;;;•  S  S  S  » 

»>*«w»,¥a4        l,oW,W7  1,017,901           298,178 

TorAl.io.YE4...     »29,««3,823    $24,238,713  916,616,012    913.627.618 


IMPORTS  AND  EXPORTS,  li»13  ' 


Grait  BriUin  ... 

Oeraunjr  

United  SUte«  .... 

France  

Belgium 

Giuiro  Total 


lurotrs  FBOH 

96S,M8,341 

30,772,742 

30,413,385 

8,847,886 

9,674,860 

9142,801.576 


EXFOm  TO 

936,028,043 

29,578,138 

20,089,158 

6,623,260 

5,671.426 

9120.274,001 


THREE  PRINCIPAL  IMPORTINO  COUNTRIES ' 


1008  

1909  

1910  

1911  

1912  

1913  

UlTIRD 

States 
98,697,209 
9,601,084 
13,369,774 
16,776,969 
16,806,341 

1914  

1915  

United 

KiNQDOlC 

930,630,809 
31,842,746 
34,340,673 
40,796,279 
38,599,283 


OEIlfANT 

927,555,784 
22,435,041 
26.296.071 
32,696,171 
33.189.070 


Total 

IMFOBTS 

907,202,960 
95,300,300 
108,627,188 
127,381,470 
122,075,994 


U.  S. 


"Otto  Wilaon:   Forecast  of  Trade  with  South  America  in  1915 
Bureau  of  Foreign  and  Domestic  Commerce.  '»"«"=»  "»  i»io. 

'Otto  Wilson:   South  America  as  an  Export  Field      U    S    BnrA...  «* 
Foreign  and  Domestic  Commerce.  Bureau  of 


62 


APPENDIX  B 


III 


%f 


CHILEAN  COMMERCE  (1913)  * 

,      ^""*  Total  TMAttt 

teZSr//**    •120.274.001 

Niffi  <**'    144,663.312 

CotmI^    111,464.397 

wSJT     10.337,360 

,^,  „.         ~'    3,383,663 

(d)  Figures  include  gold  and  •liver. 


CHILE— STATISTICS  OF  MANUFACTURES 
1911 

Kind  of  Mawotactomm  EOTABUSHifEws 

Alcohol,  beverages,  etc 007 

Pottery,  ceramics  and  glassware « 

Foods  and  food  preparations oat 

Ughting,  heating  and  combustibles   .  37 

Oock-^ard  and  ship  repair  sUtions. ...  27 

Clothing,  etc -f  J 

Wood  and  manufactures   g^i 

Construction  materials   ......  an 

Textiles   °| 

MeUls  and  manufactures  mk 

Furniture    ^ 

Paper,  printing  presses,  etc 290 

Hides  and  skins,  and  manufactures  ...  1 199 

Chemical  and  pharmaceutical  products  *iao 

Tobacco  and  manufactures oa 

Vehicles  ,S 

Various   J J^ 

'^'"^  6,722 

» U.  S.  Commercial  Reports,  January  2,  1915. 


Capital 
18,222,433 

650,009 
27,601.757 
6,073.374 
i. 065.868 
5.869.542 
8,666,065 
1,921,780 
3,608,027 
5,033,705 
1,155,970 
5,277,145 
11,249,800 
4,046,385 

986,076 
1,063.566 
1,164.964 

•94,257,466 


h 


APPENDIX  B 


CHILE 
STATinics  v<r  Bsponai 


CooatrlM 
United  KingdOB 


Germany 


ViMfi  SUtea. . . 


Fnnee , 

Belftam 

Netbcrlaads    

Spate 

Uracnay    

Argentina  


Japan 


Bolivia 


Otber  Countriea.. 


Total 


Tear 
1»I0 
1911 
1912 
1913 
1914 
.  1910 
1911 
1912 
1913 
1914 
,   1910 
1911 
1912 
1913 
1914 
1910 
1911 
1912 
1913 
1914 
1910 
1911 
1912 
1918 
1914 
1910 
1911 
1912 
1018 
1914 
1910 
1911 
1912 
1013 
1014 
1010 
1011 
1912 
1913 
1914 
1910 
1911 
1012 
1013 
1014 
1910 
1011 
1912 
1913 
1914 
1010 
1011 
1012 
1013 
1014 
1910 
1011 
1012 
1013 
1014 


Animal 
Product* 

$5,108,334 
4.865,M0 
4.001.008 
6.478,774 
S,0M,807 
1,783.228 
1.610,946 
1.861.S78 
1,691.860 
1,636.874 
287.7SS 
06,201 
86.433 
20.097 
158,361 
1,171.868 
1.1S7.620 
1.389,147 
1,946,971 
670,441 
141,317 
140,224 
97.2.33 
290.922 
42,983 
12.814 
90.066 
34.438 
69,652 
32  808 

220 


1.003 

613 

716 

33.773 

18 

72,939 

109.451 

84.384 

29,488 

202.134 


120 
'1.264 


67.447 
41,804 
64.910 
60.540 
18,516 
120,096 
80,055 
55,506 
82,621 
64,386 


VegeUble 
Productv 

$8,960,165 
1,987,889 
2,739,886 
8,069,961 
3,118,996 
807,318 
882,774 
1,148,821 
944,397 
998,293 
124,628 
217,671 
1,601 
189,668 
210,213 
90,100 
18.744 
20,413 
26,739 
16,828 
69,299 
198,329 
229,648 
138,017 
49,062 
46,742 
92,689 
119,360 
14,147 
18,002 
1,406 
20,234 


2,100 

200,977 

431.181 

228.045 

302,204 

231,022 

849,401 

1,003,274 

1,020,441 

855,003 

1,132,627 

ioo 

22 


850.350 

565,212 

480,103 

445.103 

250.038 

1.107.917 

414,984 

1.237.806 

1.008.  TOO 

502,648 


Jgl?  $8,823,644  $8,074,523 

1011  7,668.660  6381686 

1012  7.580.062  7240054 
}2?f  §-22Z-'02  7080585 
1914  7.066.018  6.082.806 

IT   o'?!'""  "(furea  for  1010-11-12    bm  Otto  wii.nn 
V.  8.  Bureau  of  Foreign  and  DoiwUc  Commence 


Mineral 
Product* 
$38,714,734 
47,845,096 
48,360,239 
46,999,462 
31,849,984 
20,479,097 
28,698,926 
26,031,886 
28,147,807 
16,879,252 
24,264.200 
19.237,176 
24,425,951 
30,207,534 
31,057,078 

3,047,551 

4,660,608 

6.223,415 

7,251,877 

3,548,944 

3,236.880 

3,166,268 

4,322,816 

9,286,020 

3.392,460 

2,301,287 

3,338.118 

4,081,630 

4,400,.303 

3,230,967 

1.087,498 

1.081,029 

1,834,410 

987,174 


787,661 

2,483,624 

86.172 

'  lo.aoi 

13.471 
17,388 
04,832 

730,215 

1,018,293 

067,114 

1.332,277 

818.061 

1.347 

2,501 

2.259 

11,200 

0,666 

2,471.177 

2.244.4C2 

4.023.008 

1.561.7.'i0 

3,448,132 


Tariona 
Producta 
$6,702 
0,788 
1,621 
544 
21,520 
73,267 
37,626 
23.410 
28,718 
9,567 
4,196 
884 
680 
87 
7,680 
68.707 
38,206 
30.509 
22.702 
8.019 
1.031 
9,208 
1,263 
310 
4,463 


102 


38 
1,308 
1,171 


1,186 

14.330 

2.021 

4„395 

1,707 

2.438 

116,147 

76,466 

96.348 

58.668 

70,684 

26 

1,132 

100 


$08.234,:<.-)e 
107,483.237 
122.664.742 
126..<»ee.417 
03.208,408 


4.!^.-J7 

357.870 

56.934 

30.421 

30.433 

15.505 

16,635 

13.176 

8.151 

4,223 

14.458 

$050,408 
243.111 
157.305 
147.172 
170,080 


ToUl 
$47,839,025 
93.298.282 
99.102.649 
55.648.341 
40,041,807 
28,142,907 
26,100,770 
28,060.696 
30.772.742 
18,078.986 
24.680.878 
19,651,932 
24,514,565 
80,413,386 
31,434,241 
6,237,286 
6,865,178 
7,668,570 
8,847,885 
4,245,128 
3,438,487 
3,479,020 
4,610,060 
5,674,860 
3,444.658 
2.450.843 
3,441,760 
4,235.548 
4,470,102 
3.200.005 
1.090.262 
2.011,650 
1,834,410 
087,174 
3,376 
225,009 
1.222,076 
2.717,680 
424.0.<I6 
234.378 
1.048.774 
1.108.662 
1.128,561 
1,034.880 
1.511.508 
730,241 
1.01H.B67 
0.57.245 
1,333.481 
f)23.408 
1.2N6.ni4 
♦iM.541 
.'i>«6,302 
647.276 
280.715 
3.716.286 
2.762.177 
6.225.490 
2.747.402 
4.U30.621 


$115,782,011 
l:.'n.B76.723 
137,B43.15;< 


Soutli  America  as  an  Export  Field. 


